In terms of level of detail provided in the

46. In terms of level of detail provided in the individual financial statements, the U.S.
tends to:
A) emphasize more line items on the face of the financial statements.
B) rely less on footnote disclosure.
C) condense the amount of line items and supplement with more footnote detail.
D) use footnotes only when absolutely required by GAAP.
Answer: C Level: Medium LO: 7
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47. Which of the following is found in a Mexican income statement in the
“Comprehensive Financing Result” section?
Level: Hard LO: 7
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Chapter 1 Introduction to International Accounting
48. In the United States conformity between financial statement presentation and tax
treatment is required only for:
Level: Medium LO: 3
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24 Doupnik, International Accounting 2e
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49. In some countries, financial accounting and tax accounting are so closely related that
there is very little need to account for deferred income taxes. Of the countries listed
below, which has a financial accounting system that is most different from its tax
laws?
Level: Medium LO: 3
50. In some countries, financial institutions operate under Shariah, which also gives
guidance about accounting practice in these companies. What is “Shariah?”
A) Shariah is the financial accounting standards board in Saudi Arabia.
B) Shariah is the law governing human conduct that is derived from the Koran.
C) Shariah is the codification of banking regulations in the European Union.
D) Shariah is a political system used in South American countries.
Answer: B Level: Medium LO: 5
51. Assets are commonly shown in order of their liquidity, or in reverse order of their
liquidity. What does “liquidity” mean?
Level: Easy LO: 7

Chapter 1 Introduction to International Accounting
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