How many trustees of the IFRS foundation will normally be senior partners of prominent
international accounting firms?
a. 0
b. 10
c. 5
d. 2 - ANS D
Which of the following statements is true of the IASB?
a. all members of the board should be from a single country
b. the board should contain 6 part time members
c. at least 13 members of the board must have experience as auditors
d. the board consists of 16 members - ANS D
Which of the following is NOT true of the due process followed by the IASB in formulating
International Financial Reporting Standards?
a. a period of public comment is provided after discussion papers are prepared
b. exposure drafts are published prior to taking a vote of the board
c. national accounting standards and practices are studied before preparing exposure drafts
d. standards are approved by a unanimous vote of the 16 member board - ANS D
To create an appropriate mix of members of the IASB, since 2012 the board includes
a. eight auditors
b. a diverse geographical balance of members
c. eight academic representatives
d. four members of the FASB - ANS B
Which of the following is NOT an objective of the IASB?
a. to establish worldwide uniformity of accounting practice
b. to promote the use and application of global accounting standards
c. to encourage convergence of national accounting standards and international
d. the develop a single set of enforceable global accounting standards - ANS A
Which of the following is NOT a problem caused by accounting diversity?
a. lack of qualified international auditors
, b. access to foreign capital markets
c. comparability of f/s
d. prep of consolidated f/s - ANS A
What is likely to be the source of accounting standards in common law countries?
a. tax law
b. federal and local legislatures
c. the IASB
d. non-gov entities like FASB - ANS D
In code law countries such as Germany, France, Japan, tax law and accounting standards tend
to be
a. general
b. unrelated
c. detail oriented
d. very different - ANS A
In countries such as the US, there is great demand for public disclosure of accounting
information. What is the reason for this?
a. businesses rely heavily on financing through issuance of stock
b. the american populace is better able to read f/s than people in other countries
c. US gov. officials are generall members of corp boards of directors and can get all the
information they require
d. corp. management is not trustworthy - ANS A
What is the likely result when accounting rules are left up to prof. associations rather than being
legislated by governmental bodies?
a. very general accounting rules are creates, as in code law countries
b. very general accounting rules are created, as in common law countries
c. very detailed rules for practice are created, as in common law countries
d. very detailed rules for practice are created as in code law countries - ANS C
In the US, conformity between presentation of the financial statements and the tax statements is
required only for
a. depreciation
b. the use of the LIFO inventory cost flow assumption
c. gains or losses on securities
d. goodwill - ANS B
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