Question 1

What is likely to be the source of accounting standards in common law countries?

Accepted Answer

A)  Tax law
B)  Non-government entities such as the FASB
C)  Federal and local legislatures
D)  The International Accounting Standards BoardE) B) and C)
F) B) and D)

Question 2

In Gray's framework for accounting system development, optimism is a value of accounting standards that would most likely be found in _____.

Accepted Answer

A)  Japan
B)  Australia
C)  Mexico
D)  BrazilE) All of the above
F) C) and D)

Question 3

What does "harmonization" mean in the context of international accounting?

Accepted Answer

A)  The process of combining the financial statements of foreign subsidiaries into the parent company's financial statements
B)  The process of reducing accounting differences across countries
C)  Disclosing the accounting methods used in preparing the financial statements
D)  Assessing the exposure resulting from inadequate internal controlsE) B) and D)
F) All of the above

Question 4

Which of the following is NOT a problem caused by accounting diversity?

Accepted Answer

A)  Lack of qualified international auditors
B)  Preparation of consolidated financial statements
C)  Access to foreign capital markets
D)  Comparability of financial statementsE) A) and B)
F) B) and C)

Question 5

In Gray's framework for accounting system development, which of the following countries tends to have a relatively high degree of transparency in their companies' financial statements?

Accepted Answer

A)  Germany
B)  Switzerland
C)  United Kingdom
D)  Saudi ArabiaE) All of the above
F) A) and B)

Question 6

Which of the following financial statements is NOT universally included in annual reports?

Accepted Answer

A)  Balance sheet
B)  Statement of cash flows
C)  Income statement
D)  All of the above statements are included in annual reports worldwide.E) A) and B)
F) None of the above

Question 7

The term "Class B Accounting" as it is used by the researcher Christopher Nobes refers to:

Accepted Answer

A)  less preferred accounting systems.
B)  less efficient accounting systems.
C)  accounting systems that primarily serve external shareholders.
D)  accounting systems that were developed primarily for creditors and taxing authorities.E) C) and D)
F) A) and D)

Question 8

In the United States, conformity between presentation of the financial statements and the tax statements is required only for:

Accepted Answer

A)  goodwill.
B)  depreciation.
C)  gains or losses on securities.
D)  the use of the LIFO inventory cost flow assumption.E) A) and C)
F) A) and B)

Question 9

The "Fair Presentation/Full Disclosure Model" is a classification scheme used by:

Accepted Answer

A)  Germany.
B)  Japan.
C)  the United States and the United Kingdom.
D)  Brazil.E) A) and D)
F) C) and D)

Question 10

In Gray's framework for accounting system development, the cultural dimensions of individualism, power distance, uncertainty avoidance, and masculinity directly affect:

Accepted Answer

A)  accounting systems.
B)  accounting values.
C)  external influences.
D)  ecological influences.E) A) and B)
F) A) and C)

Question 11

Individualism, power distance, uncertainty avoidance, and masculinity are examples of:

Accepted Answer

A)  accounting values.
B)  ecological factors.
C)  cultural dimensions.
D)  external forces.E) C) and D)
F) B) and D)

Question 12

Which of the following statements is true about the comparability of financial statement of the United States and the United Kingdom?

Accepted Answer

A)  The result of Latin American colonialism is the large number of countries with the United Kingdom's influence on their accounting practices.
B)  The financial statements of companies in the United States and the United Kingdom are comparable as they are prepared after adjusting inflation, which is a critical factor affecting accounting practice.
C)  The basic principle followed by both countries in preparing financial statements is government economics and government tax and legal framework.
D)  The accounting practices of both the countries are oriented toward the decision needs of a large number of investors and creditors.E) B) and D)
F) C) and D)

Question 13

What term is used to refer to a cultural aversion to ambiguous situations?

Accepted Answer

A)  Uncertainty avoidance
B)  Masculinity
C)  Power distance
D)  IndividualismE) A) and B)
F) B) and D)

Question 14

The extent to which hierarchy and unequal authority distribution in institutions and organizations are accepted within a culture is referred to as:

Accepted Answer

A)  uncertainty avoidance.
B)  masculinity.
C)  individualism.
D)  power distance.E) C) and D)
F) All of the above

Question 15

The accounting standards in code law countries tend to be:

Accepted Answer

A)  very detailed.
B)  formulated by organizations such as the FASB.
C)  stated generally without much guidance on accounting procedures.
D)  very conservative.E) All of the above
F) None of the above

Exam 2: Worldwide Accounting Diversity

Which of the following statements is true about the comparability of financial statement of the United States and the United Kingdom?

Correct Answer
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The "Fair Presentation/Full Disclosure Model" is a classification scheme used by:

Correct Answer
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In Gray's framework for accounting system development, which of the following countries tends to have a relatively high degree of transparency in their companies' financial statements?

Correct Answer
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The extent to which hierarchy and unequal authority distribution in institutions and organizations are accepted within a culture is referred to as:

Correct Answer
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Which of the following is NOT a problem caused by accounting diversity?

Correct Answer
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What does "harmonization" mean in the context of international accounting?

Correct Answer
verified

In Gray's framework for accounting system development, optimism is a value of accounting standards that would most likely be found in _____.

Correct Answer
verified

The term "Class B Accounting" as it is used by the researcher Christopher Nobes refers to:

Correct Answer
verified

What term is used to refer to a cultural aversion to ambiguous situations?

Correct Answer
verified

The accounting standards in code law countries tend to be:

Correct Answer
verified

In Gray's framework for accounting system development, the cultural dimensions of individualism, power distance, uncertainty avoidance, and masculinity directly affect:

Correct Answer
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In the United States, conformity between presentation of the financial statements and the tax statements is required only for:

Correct Answer
verified

What is likely to be the source of accounting standards in common law countries?

Correct Answer
verified

Individualism, power distance, uncertainty avoidance, and masculinity are examples of:

Correct Answer
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Which of the following financial statements is NOT universally included in annual reports?

Correct Answer
verified

Exam 2: Worldwide Accounting Diversity

Which of the following statements is true about the comparability of financial statement of the United States and the United Kingdom?

Correct AnswerverifiedShow Answer

The "Fair Presentation/Full Disclosure Model" is a classification scheme used by:

Correct AnswerverifiedShow Answer

In Gray's framework for accounting system development, which of the following countries tends to have a relatively high degree of transparency in their companies' financial statements?

Correct AnswerverifiedShow Answer

The extent to which hierarchy and unequal authority distribution in institutions and organizations are accepted within a culture is referred to as:

Correct AnswerverifiedShow Answer

Which of the following is NOT a problem caused by accounting diversity?

Correct AnswerverifiedShow Answer

What does "harmonization" mean in the context of international accounting?

Correct AnswerverifiedShow Answer

In Gray's framework for accounting system development, optimism is a value of accounting standards that would most likely be found in _____.

Correct AnswerverifiedShow Answer

The term "Class B Accounting" as it is used by the researcher Christopher Nobes refers to:

Correct AnswerverifiedShow Answer

What term is used to refer to a cultural aversion to ambiguous situations?

Correct AnswerverifiedShow Answer

The accounting standards in code law countries tend to be:

Correct AnswerverifiedShow Answer

In Gray's framework for accounting system development, the cultural dimensions of individualism, power distance, uncertainty avoidance, and masculinity directly affect:

Correct AnswerverifiedShow Answer

In the United States, conformity between presentation of the financial statements and the tax statements is required only for:

Correct AnswerverifiedShow Answer

What is likely to be the source of accounting standards in common law countries?

Correct AnswerverifiedShow Answer

Individualism, power distance, uncertainty avoidance, and masculinity are examples of:

Correct AnswerverifiedShow Answer

Which of the following financial statements is NOT universally included in annual reports?

Correct AnswerverifiedShow Answer

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