Financial Accounting The Impact on Decision Makers 10e Gary A Porter Curtis L Norton - Test Bank

,Appendix A: International Financial Reporting Standards
True / False

1. The state of economic development can affect accounting standards.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
LEARNING OBJECTIVES: FACC.PONO.13.A-01 - LO: A-01
KEYWORDS: Bloom's: Remembering

2. Japan has a greater number of differences than the U.S. between the amount of income reported to stockholders and that
reported to the taxing authorities.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
LEARNING OBJECTIVES: FACC.PONO.13.A-01 - LO: A-01
KEYWORDS: Bloom's: Remembering

3. No single explanation can be given for the divergence of accounting standards.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
LEARNING OBJECTIVES: FACC.PONO.13.A-01 - LO: A-01
KEYWORDS: Bloom's: Remembering

4. In countries, like Japan and much of Europe, fewer differences between the amount of income reported to stockholders
and that reported to the taxing authorities exist than in the U.S.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
LEARNING OBJECTIVES: FACC.PONO.13.A-01 - LO: A-01
KEYWORDS: Bloom's: Remembering

5. According to the text, in economies like those that made up the former Soviet Union, accounting standards are
relatively less complex due to the fact that they are just beginning to be developed.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
LEARNING OBJECTIVES: FACC.PONO.13.A-01 - LO: A-01
KEYWORDS: Bloom's: Remembering

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

,Appendix A: International Financial Reporting Standards
6. Ultimately, it will be the responsibility of the FASB in the U.S. to decide if the advantages of IFRS’s outweigh the
disadvantages.
a. True
b. False
ANSWER: False
DIFFICULTY: Moderate
LEARNING OBJECTIVES: FACC.PONO.13.A-02 - LO: A-02
KEYWORDS: Bloom's: Understanding

7. A single set of accounting standards could help a U.S. company save time and money in the acquisition of a German
company.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
LEARNING OBJECTIVES: FACC.PONO.13.A-02 - LO: A-02
KEYWORDS: Bloom's: Understanding

8. IFRS is now mandatory in all member states of the economic and political organization known as the European Union.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
LEARNING OBJECTIVES: FACC.PONO.13.A-03 - LO: A-03
KEYWORDS: Bloom's: Remembering

9. Companies in Mexico had to begin using IFRS by 2020.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
LEARNING OBJECTIVES: FACC.PONO.13.A-03 - LO: A-03
KEYWORDS: Bloom's: Remembering

10. The U.S. accounting standards are more principle-based than IFRS.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
LEARNING OBJECTIVES: FACC.PONO.13.A-04 - LO: A-04
KEYWORDS: Bloom's: Understanding




© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

, Appendix A: International Financial Reporting Standards
11. While U.S. GAAP requires a complete set of financial statements, including a balance sheet, statement of
stockholders’ equity, income statement, and statement of cash flows, IFRS does not.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
LEARNING OBJECTIVES: FACC.PONO.13.A-04 - LO: A-04
KEYWORDS: Bloom's: Remembering

12. U.S. GAAP requires companies to present a balance sheet with classifications for current and long-term liabilities,
while IFRS does not.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
LEARNING OBJECTIVES: FACC.PONO.13.A-04 - LO: A-04
KEYWORDS: Bloom's: Remembering

13. Both U.S. GAAP and IFRS apply the lower-of-cost-or market rule in a similar manner to inventory.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
LEARNING OBJECTIVES: FACC.PONO.13.A-04 - LO: A-04
KEYWORDS: Bloom's: Remembering

14. Both U.S. GAAP and IFRS classify gains and losses that are both unusual in nature and infrequent in occurrence as
extraordinary and present them in a separate section of the income statement.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
LEARNING OBJECTIVES: FACC.PONO.13.A-04 - LO: A-04
KEYWORDS: Bloom's: Remembering

15. Regarding the valuation of operating assets, IFRS allows companies to use fair value.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
LEARNING OBJECTIVES: FACC.PONO.13.A-04 - LO: A-04
KEYWORDS: Bloom's: Remembering




© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.