Chapter 10—INTERNATIONAL ACCOUNTINGTRUE/FALSE1.The two general financial reporting models that have evolved in economically advanced countriesare the Anglo-Saxon model and the European Model.ANSWER: FALSE2.Accounting may be called “the language of business.”ANSWER: TRUE3.The Anglo-Saxon model of reporting features the use of judgment to make financial statements useful. ANSWER: TRUE4.The continental model of financial reporting generally presents a strong accounting profession.ANSWER: FALSE5.Professional accounting societies first arose in the United Kingdom in the middle of the 19thcentury.ANSWER: TRUE6.The Accounting Standards Board (ASB) in the UK operates along the lines of the FASB.ANSWER: TRUE7.The Accounting Standards Steering Committee (ASSC) is the United Kingdom equivalent of the Securities and Exchange Commission. ANSWER: FALSE8.The continental model of financial reporting generally reflects a strong governmental influence on accounting regulation.ANSWER: TRUE9.In the United States, the term “present fairly” in opinions of American auditing firms is the same as the “true and fair view” of international financial reporting.ANSWER: FALSE10.Financial accounting standard setting in New Zealand has remained within the private sector. ANSWER: TRUEAccounting Theory: 8theditionPage 1 of 12
Chapter 10—INTERNATIONAL ACCOUNTING11.The ASEAN is a group of developing nations in southeast Asia whose goal is to foster trade and development both within and outside the region. ANSWER: TRUE12.The Netherlands is a continental nation with a largely Anglo-Saxon accounting model. ANSWER: TRUE13.Within the continental model of financial reporting, Germany has the closest approach to a uniform national accounting system.ANSWER: FALSE14.Harmonization of accounting standards refers to the degree of coordination or similarity among the various sets of national accounting standards and methods and the formats of financial reporting.ANSWER: TRUE15.Many continental model countries, such as France and Germany, have viewed harmonization as an opportunity to coordinate their accounting standards with those of the United States.ANSWER: FALSE16.The International Accounting Standards Committee was formed in an attempt at economic integration of member countries.ANSWER: FALSE17.The United States is not a member of the G4 +1.ANSWER: FALSE18.British standard-setters blazed the trail of accounting regulation being centered in the private sector.ANSWER: FALSE19.Countries following the continental model include most major countries of Western Europe as well as Japan.ANSWER: TRUE20.The key factor of difference between the Anglo-Saxon and continental models appears to be between capital-based financial markets and credit-based financial markets.
You've reached the end of your free preview.
Want to read all 12 pages?