IA mt1

1. 1.The practice of having the stock listed and traded on several foreign stock exchanges is known as

• A. SEC registration.

• B. initial public offering.

• C. consolidation.

• D. cross-listing.

2.What group is primarily responsible for the creation of International Financial Reporting Standards (IFRS)? 

• A. Financial Accounting Standards Board (FASB)

• B. International Forum on Accountancy Development (IFAD)

• C. International Federation of Accountants (IFA)

• D. International Accounting Standards Board (IASB)

3. 3.What does external assurance mean in the context of sustainability reporting?

• A. Insurance purchased to cover fines for environmental damage

• B. Hiring a third party to attest to the claims made in a sustainability report

• C. Hiring a third party to publicize the company's sustainability initiatives

• D. Hiring a third party to provide environmental consulting

4.What is likely to be the source of accounting standards in common law countries?  

• A. Tax law

• B. Non-government entities such as the FASB

• C. Federal and local legislatures

• D. The International Accounting Standards Board

5. 5.If most of a country's business financing comes from families, banks, and the government, what should we expect in terms of information disclosure to the public?  

• A. Relatively little disclosure because the public isn't a major factor

• B. A great deal of disclosure because it will be the only way for interested parties to learn about the company

• C. Complete openness of accounting records

• D. No disclosure at all

6.In countries such as the U.S., there is great demand for public disclosure of accounting information. What is the reason for this?  

• A. Corporate management isn't trustworthy.

• B. Businesses rely heavily on financing through issuance of stock to the public.

• C. The American populace is better able to read financial statements than people in other countries.

• D. U.S. government officials are generally members of corporate boards of directors and can get all the information they require.

7. 7.The extent to which hierarchy and unequal authority distribution in institutions and organizations are accepted within a culture is referred to as

• A. uncertainty avoidance

• B. masculinity.

• C. individualism

• D. power distance

8.A cultural emphasis on values of performance and achievement rather than values of relationships, caring, and nurturing is referred to as

• A. uncertainty avoidance

• B. masculinity

• C. individualism

• D. power distance

9. 9.Which of the following statements is true about the comparability of financial statement of the United States and the United Kingdom? 

• A. The result of Latin American colonialism is the large number of countries with the United Kingdom's influence on their accounting practices.

• B. The financial statements of companies in the United States and the United Kingdom are comparable as they are prepared after adjusting inflation, which is a critical factor affecting accounting practice.

• C. The basic principle followed by both countries in preparing financial statements is government economics and government tax and legal framework.

• D. The accounting practices of both the countries are oriented toward the decision needs of a large number of investors and creditors.

10.Why does the IASB believe that a principles-based approach to standard setting is superior to a rules-based approach? 

• A. Detailed guidance or rules encourage accountants to look for ways around the rules rather than trying to provide useful information.

• B. Principles-based standard setting is less costly to undertake than rules-based standard formulation.

• C. It is desirable to have all corporations in all countries using the same accounting practice.

• D. A conceptual framework for standard setting has demonstrated to encourage the greatest economic development.