estion 18. Which of the following does not describe a cultural classification used to describe accounting systems?

29 Jun estion 18. Which of the following does not describe a cultural classification used to describe accounting systems?

Question
18. Which of the following does not describe a cultural classification used to describe accounting systems?

a. Nordic accounting

b. Latin accounting

c. North American accounting

d. Asian accounting

19. Which of the following countries has tax regulations that do not permit LIFO inventory valuation?

a. Germany

b. United States

c. United Kingdom

d. LIFO is not permitted for tax purposes in any of these countries.

20. Which of the following countries uses tax rules to determine if leases should be capitalized for accounting purposes?

a. Germany

b. Japan

c. United Kingdom

d. All of these countries uses tax rules to determine capitalization.

21. In which country is the capitalization of research and development costs permitted, under certain conditions?

a. Germany

b. United States

c. Mexico

d. Under certain circumstances, capitalization is permitted in all three countries.

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Chapter 9

22. In which of the following countries are both increases and decreases in the fair value of plant, property and equipment recognized?

a. United States

b. Germany

c. Japan

d. United Kingdom

23. Which of the following has not led to an increase in the demand for audited financial statements?

a. growth in the corporate form of business

b. an increase in global capital needs

c. an increase in investor bases

d. an increase in global tax rates

24. Which of the following is not an objective of the International Accounting Standards Board (IASB)?

a. to establish legally enforceable accounting standards to govern international business

b. to formulate and publish accounting standards to be observed in the presentation of financial statements

c. to work for the harmonization of accounting standards

d. all are objectives of the IASB

25. The Securities and Exchange Commission requires foreign companies seeking to sell securities on U.S. stock markets to

a. reconcile its financial statements to U.S. GAAP.

b. reconcile its financial statements to U.S. tax regulations.

c. provide financial statements prepared according to U.S. GAAP.

d. provide investors details of differences between U.S. accounting standards and International accounting standards.

26. The IASB has established “benchmark” accounting methods. Companies adopting methods other than benchmark methods will

a. receive an adverse audit opinion.

b. be banned from transacting business with international banks.

c. be encouraged to provide a reconciliation of results restating them under the benchmark method.

d. be fined by an amount based on the magnitude of the departure from the benchmark method.

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27. Which of the following accounting methods, commonly employed in the United States, is discouraged by the IASB?

a. the general expensing of research and development costs

b. LIFO inventory valuation

c. capitalization of certain leases

d. disclosure of related-party transaction

28. How does the International Federation of Accountants (IFAC) differ from the International Accounting Standards Board (IASB)?

a. Adherence to IFAC standards is not voluntary.

b. The IFAC is concerned with financial reporting standards only.

c. The IFAC is dominated by the European Community (EC).

d. The IFAC is more concerned with encouraging the harmonization of accounting principles than with standard setting.

29. The European Community (EC) has established accounting directives. Unl