International Accountancy Quiz Question from Test Bank

* interrogative 1 2. 5 surface of 2. 5 points The sideline inventory learning above was taken from the records of BlobeKom Ltd. historical Cost $12,000Replacement Cost $ 9,000Expected selling scathe $10,000Expected selling cost $ 500Normal dough margin 10% of selling priceUnder U. S. GAPP, what should the equilibrate Sheet report for inventory? service Selected adjudicate $9,000 * dubiety 2 2. 5 show up of 2. 5 points How should the cost of borrowing funds to procure or construct property, plant, and equipment be accounted for under IASB rules, as revised in 2007? resoluteness Selected execute It should be added to the other costs of acquiring unflinching additions to determine the amount for the balance sheet. * distrust 3 2. 5 aside 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 $ 500Nor mal profit margin 10% of selling priceUnder IAS 2, what should the Balance Sheet report for Inventory? reaction Selected arrange $9,500 * Question 4 2. 5 issue of 2. 5 points Under IAS 16 (Property, Plant, and Equipment), subsequent re paygrade decreases atomic number 18 suffice Selected Answer first recognized as a reduction in some(prenominal) think revaluation surplus * Question 5 2. 5 out of 2. 5 points Which of the following is generally trustworthy about the differences between U. S. generally accepted report principles and IASB standards? Answer Selected Answer U. S. generally accepted accounting principles 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 Seventh guiding issued by the European Commission is a statement to the European wedding (EU) members concerningAnswer Selected Answer Consolidated financial statements * Question 7 2. 5 out of 2. 5 point s What basis does the International Accounting Standards Board custom in formulating its IFRS? Answer Selected Answer A framework of accounting principles * Question 8 2. 5 out of 2. 5 points What was the Norwalk Agreement? Answer Selected Answer A pledge between the Financial Accounting Standards Board in the U. S. and the IASB to make their reporting 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 interim periods are an integral part of the practiced 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 goal of accounting standards harmonization? Answer Selected Answer Redu cing 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 topnotch to a rules-based perspective? Answer Selected Answer Detailed prescriptions or rules march on accountants to look for ways to circumvent the rules rather than trying to provide effectual 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 author 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 harmonise to the simulation for Preparation and Presentation of Financial Statements of the IASB, what is the definition of INCOME? Answer Selected Answer amplification 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 formulation 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 addition 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 indicate the amount for which an asset could be exchanged between knowledgeable, willing parties in an arms length exertion? Answer Selected Answer Fair market value