International Accountancy Quiz Question from Test Bank

* marvel 1 2. 5 come out of the closet of 2. 5 points The succeeding(a) record information above was taken from the records of BlobeKom Ltd. Historical live $12,000Replacement Cost $ 9,000Expected interchange price $10,000Expected selling cost $ 500Normal profit margin 10% of selling priceUnder U. S. GAPP, what should the Balance Sheet report for Inventory? resoluteness Selected Answer $9,000 * oral sex 2 2. 5 out of 2. 5 points How should the cost of borrowing funds to borrow or construct property, plant, and equipment be accounted for under IASB rules, as revised in 2007?Answer Selected Answer It should be added to the other costs of acquiring fixed assets to jibe the amount for the balance sheet. * question 3 2. 5 out of 2. 5 points The following inventory information above was taken from the records of BlobeKom Ltd. Historical Cost $12,000Replacement Cost $ 9,000Expected selling price $10,000Expected selling cost $ 500Normal profit margin 10% of selling priceUnder IAS 2, what should the Balance Sheet report for Inventory?Answer Selected Answer $9,500 * Question 4 2. 5 out of 2. 5 points Under IAS 16 (Property, Plant, and Equipment), subsequent revaluation decreases areAnswer Selected Answer first recognized as a reduction in any related revaluation surplus * Question 5 2. 5 out of 2. 5 points Which of the following is generally true most the differences surrounded by U. S. GAAP and IASB standards? Answer Selected Answer U. S. GAAP tends to be more rule-based, and the IASB standards tend to be principles-based. * Question 6 2. 5 out of 2. 5 points The ordinal Directive issued by the European Commission is a statement to the European Union (EU) members concerningAnswer Selected Answer Consolidated financial statements * Question 7 2. 5 out of 2. 5 points What basis does the International Accounting Standards Board use in formulating its IFRS? Answer Selected Answer A fram ework of accounting principles * Question 8 2. 5 out of 2. 5 points What was the Norwalk Agreement? Answer Selected Answer A pledge between the pecuniary Accounting Standards Board in the U. S. and the IASB to make their coverage standards compatible * Question 9 2. 5 out of 2. 5 points How does IAS 34 (Interim Financial Reporting) differ from U. S. GAAP? Answer Selected Answer U. S. GAAP takes the position that stave periods are an integral part of the full year. * Question 10 2. 5 out of 2. 5 points Which of the following statements is true about accounting harmonizaiton?Answer Selected Answer All of the above are true about accounting harmonization * Question 11 2. 5 out of 2. 5 points From a practical standpoint, what is the final stage of accounting standards harmonization? Answer Selected Answer Reducing the conflict among national accounting standards * Question 12 2. 5 out of 2. 5 points Which of the following inventory valuation methods commonly used in the U. S. is NOT allowed under IAS 2 (Inventories)? Answer Selected Answer LIFO * Question 13 . 5 out of 2. 5 points Why does the IASB believe that a principles-based approach to standard setting is superior to a rules-based perspective? Answer Selected Answer Detailed prescriptions or rules encourage accountants to breast for ways to circumvent the rules rather than trying to provide useful information. * Question 14 2. 5 out of 2. 5 points In which of the following countries is the use of IFRS not allowed for domestic companies listed on its stock exchanges? Answer Selected Answer United States * Question 15 2. 5 out of 2. 5 points What types of issues cause differences between International Financial Reporting Standards and U. S. GAAP? Answer Selected Answer All of the above may be different between IFRS and U. S. GAAP * Question 16 2. 5 out of 2. 5 points According to the Framework for Preparation a nd Presentation of Financial Statements of the IASB, what is the definition of INCOME? Answer Selected Answer Increase in equity (other than from contributions by owners) * Question 17 2. 5 out of 2. 5 points In 1990, the European Commission stopped issuing directives related to accounting. Why? Answer Selected Answer The EU was leaving the readiness of accounting standards up to the IASC. * Question 18 2. 5 out of 2. 5 points If a company chooses the revaluation model permitted in IAS 16 for fixed asset measurementAnswer Selected Answer it must update the valuation so that the balance sheet represents fair value on the balance sheet date. * Question 19 2. 5 out of 2. 5 points Which of the following items is considered to be the most significant impediment to accounting harmonization? Answer Selected Answer Nationalism * Question 20 2. 5 out of 2. 5 points According to IAS 16 (Property, Plant & Equipment), what is the term used to indicat e the amount for which an asset could be exchanged between knowledgeable, willing parties in an arms length transaction? Answer Selected Answer Fair market value