chap011 - Multiple Choice Questions 1. The U.S. Securities...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Multiple Choice Questions 1. The U.S. Securities and Exchange Commission (SEC) requires foreign companies that wish to have stocks traded on U.S. stock exchanges to A) present financial statements which comply with international accounting standards. B) conform with U.S. GAAP or to present a reconciliation to U.S. GAAP. C) have a demonstrated need for capital to be used for operations in the U.S. D) use the U.S. dollar as their reporting currency. E) become licensed to do business in the U.S. Answer: B Difficulty: Medium 2. In countries which follow the British-American model of accounting, A) accounting practice is designed to provide adequate information to investors and creditors. B) banks are the primary source of financing for companies. C) accounting information is prepared to meet the needs of governmental planners. D) accounting standards emphasize accounting for high inflation situations. E) focuses on recent market economy reforms. Answer: A Difficulty: Easy 3. Under the Continental model of accounting, A) accounting practice is designed to provide adequate information to investors and creditors. B) accounting standards emphasize accounting for high inflation situations. C) accounting information is prepared to meet the needs of governmental planners. D) banks are the primary source of financing for companies. E) focuses on recent market economy reforms. Answer: D Difficulty: Easy 4. Under the South American model of accounting, A) accounting practice is designed to provide adequate information to investors and creditors. B) accounting standards emphasize accounting for high inflation situations. C) banks are the primary source of financing for companies. D) focuses on recent market economy reforms. E) accounting information is prepared to meet the needs of governmental planners. Answer: B Difficulty: Easy
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
5. In Japan, basic accounting principles are set primarily by A) the government. B) an organization similar to the FASB. C) the Japanese stock market. D) large Japanese banks. E) an organization of large accounting firms. Answer: A Difficulty: Medium 6. Accounting in Japan is most consistent with the A) British-American model. B) Continental model. C) South American model. D) North American model. E) Mixed Economy model. Answer: B Difficulty: Medium 7. The standard-setting organization in the United Kingdom today is the A) Accounting Standards Fellowship. B) Accounting Standards Institute. C) Institute of Chartered Accountants in England and Wales. D) Consultative Committee of Accountancy Bodies. E) Accounting Standards Board. Answer: E Difficulty: Medium 8. The financial statements prepared by British companies are A) balance sheet and income statement . B)
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/15/2012 for the course ACCOUNTING 101 taught by Professor Mrhot during the Spring '11 term at Clarion.

Page1 / 14

chap011 - Multiple Choice Questions 1. The U.S. Securities...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online