Professional Documents
Culture Documents
Ch12 TB Rankin
Ch12 TB Rankin
to accompany
Contemporary Issues in
Accounting
Prepared by
Matt Tilling
Correct answer: d
Learning Objective 12.1 ~ Discuss the nature of international accounting.
2. Which of the following is NOT a level that can be used to define international
accounting?
a. Supranational
b. Company
c. Comparative
*d. None of the above, i.e. they are all levels of international accounting.
Correct answer: d
Learning Objective 12.1 ~ Discuss the nature of international accounting.
Correct answer: b
Learning Objective 12.2 ~ Outline evidence of the diversity of international accounting
practice.
a. Tax system
b. Political system
c. Capital market structures
*d. All of the above
Correct answer: d
Learning Objective 12.3 ~ Explain the environmental, cultural and religious factors that lead
to diversity of international accounting practice.
Correct answer: b
Learning Objective 12.3 ~ Explain the environmental, cultural and religious factors that lead
to diversity of international accounting practice.
a. Civil Law
*b. Common Law
c. Codified Roman Law
d. Case Law
Correct answer: b
Learning Objective 12.3 ~ Explain the environmental, cultural and religious factors that lead
to diversity of international accounting practice.
7. The work of Hofstede has been very important to the study of international
accounting, which of the following was NOT one of his cultural characteristics used
to describe cultures around the world?
Correct answer: b
Learning Objective 12.3 ~ Explain the environmental, cultural and religious factors that lead
to diversity of international accounting practice.
8. Gray adapted Hofstedes categories for accounting, which of the following is not one
of his four accounting values?
Correct answer: d
Learning Objective 12.3 ~ Explain the environmental, cultural and religious factors that lead
to diversity of international accounting practice.
a. Australia
*b. France
c. UK
d. USA
Correct answer: b
Learning Objective 12.3 ~ Explain the environmental, cultural and religious factors that lead
to diversity of international accounting practice.
Correct answer: a
Learning Objective 12.3 ~ Explain the environmental, cultural and religious factors that lead
to diversity of international accounting practice.
11. Which of the following is NOT considered a challenge for international business
operations when faced with accounting diversity?
Correct answer: c
Learning Objective 12.4 ~ Discuss international adoption of IFRSs, explain the difference
between harmonisation and convergence and identify the benefits and limitations of IFRSs
adoption.
*a. Adoption
b. Harmonisation
c. Convergence
d. Adaption
Correct answer: a
Learning Objective 12.4 ~ Discuss international adoption of IFRSs, explain the difference
between harmonisation and convergence and identify the benefits and limitations of IFRSs
adoption.
Correct answer: c
Learning Objective 12.4 ~ Discuss international adoption of IFRSs, explain the difference
between harmonisation and convergence and identify the benefits and limitations of IFRSs
adoption.
14. Which of the following elements or standards has been raised as a significant problem
with the adoption of IFRS in certain countries?
a. Consolidation requirements
b. Fair value accounting
c. Profit focus
*d. All of the above
Correct answer: d
Learning Objective 12.4 ~ Discuss international adoption of IFRSs, explain the difference
between harmonisation and convergence and identify the benefits and limitations of IFRSs
adoption.
Correct answer: a
Learning Objective 12.4 ~ Discuss international adoption of IFRSs, explain the difference
between harmonisation and convergence and identify the benefits and limitations of IFRSs
adoption.
16. Chinas acceptance of international accounting standards would be best described as:
a. Adoption
b. Harmonisation
*c. Convergence
d. Indifference
Correct answer: c
Learning Objective 12.4 ~ Discuss international adoption of IFRSs, explain the difference
between harmonisation and convergence and identify the benefits and limitations of IFRSs
adoption.
17. The SEC allows non-US companies listed on a US stock exchange to report using:
Correct answer: c
Learning Objective 12.6 ~ Evaluate the impact of international accounting and tax issues on
multinational enterprises.
*a. Leases
b. Accounting for Income Taxes
c. Emissions trading schemes
d. All of the above
Correct answer: a
Learning Objective 12.6 ~ Evaluate the impact of international accounting and tax issues on
multinational enterprises.
Correct answer: d
Learning Objective 12.6 ~ Evaluate the impact of international accounting and tax issues on
multinational enterprises.
20. Transfer pricing has been identified as a major problem for multi-national entities.
This refers to:
Correct answer: b
Learning Objective 12.6 ~ Evaluate the impact of international accounting and tax issues on
multinational enterprises.