ch2tb - Question 1 1 What is the equivalent of the common...

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Question 1 1. What is the equivalent of the common stock account on a U.S. balance sheet on the balance sheet of a British company? D. Called-up share capital Question 2 1. What does "harmonization" mean in the context of international accounting? 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 controls 1 points Question 3 1. It is generally believed that the 1997 financial crisis in East Asia was partly due to accounting factors in that part of the world. Which of the following accounting values was lacking in that part of the world and thereby contributed to the crisis? Professionalism Statutory control Uniformity Transparency 1 points Question 4 1. Which of the following is NOT a problem caused by accounting diversity? A. Lack of qualified international auditors
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B. Preparation of consolidated financial statements C. Access to foreign capital markets D. Comparability of financial statements 1 points Question 5 1. Differences in legal systems used in various countries have been cited as one reason for diversity in accounting practices. What are the major types of legal systems? A. Commercial law and accounting law B. Rules and regulations C. Written law and unwritten law D. Common law and code law 1 points Question 6 1. The accounting standards in code law countries tend to be: A. very detailed. B. formulated by organizations such as the FASB. C. stated generally without much guidance on accounting procedures. D. very conservative. 1 points Question 7 1. What is likely to be the source of accounting standards in common law countries?
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A. Tax law B. Non-government entities such as the FASB C. Federal and local legislatures D. The International Accounting Standards Board 1 points Question 8 1. What is the likely result when accounting rules are left up to professional associations rather than being legislated by governmental bodies? A. Very general accounting rules are created, as in code law countries. B. Very detailed rules for practice are created, as in common law countries. C. Very general accounting rules are created, as in common law countries. D. Very detailed rules for practice are created, as in code law countries. 1 points Question 9 1. Relative to accounting standards in countries such as Germany, whose accounting laws are only 47 pages long, accounting practice in the U.S. is often described as being subject to: A. standards overload. B. standards minimization. C. the optimal amount of accounting regulation. D ideal accounting standards.
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