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Postby iye38 » Tue Jul 17, 2012 6:32 pm

7. In some countries, financial institutions operate under Shariah, which also gives guidance about accounting practice in these companies. What is “Shariah?”a) Shariah is the financial accounting standards board in Saudi Arabia.B) Shariah is the law governing human conduct that is derived from the Koran.C) Shariah is the codification of banking regulations in the European Union.D) Shariah is a political system used in South American countries.

8. Assets are commonly shown in order of their liquidity, or in reverse order of their liquidity. What does “liquidity” mean?
Liquidity refers to how easily the assets are converted to cash.
Liquidity means that assets are inflation-adjusted.
Liquidity refers to whether the asset is depreciable or not.
Liquidity means that the assets are closely matched to specific liabilities.

9. Individualism, power distance, uncertainty avoidance, and masculinity are examples of: a) accounting values B) ecological factors C) cultural dimensions D) external forces

13. According to Sir Bryan Carsberg, former IASC Secretary-General, what is the most significant cost of accounting diversity?
The time expended by accountants to create multiple sets of financial statements conforming to different national standards.
The cost of the IASB to regulate compliance with many national accounting standards.
The reduction in effectiveness of the international markets for capital.
The resources used by countries in legislating different sets of accounting standards.

15. Of the 14 members of the International Accounting Standards Board (IASB), how many work for the board on a full-time basis?

16. The IASB's Framework for Preparation and Presentation of Financial Statements (1989) implies that the most important group of users is:
general public.

22. Camerata Construction borrowed 19,000,000 for 10 years at 6% specifically to modernize its operations with new equipment. The average rate of interest on Camerata's debt after considering the most recent loan was 5.5%. What rate of interest should be used for capitalizing the borrowing costs on the new equipment under IAS 23?
Some other amount

23. The IASB standard on stock options (IFRS 2) is substantially the same as U.S. GAAP. How should stock options be accounted for?
Since their value is not determinable until a future date, they are not recorded, but only disclosed in the notes to the financial statements.
A compensation expense is recorded based on the value of the options expected to vest as of the date the options are granted.
An expense is recorded only if a market value for the options exists on the date the options are granted.
The options are recorded as a liability for the value of the stock at the exercise date.

24. What functional area dominates the accounting profession in Germany?
Financial reporting
Managerial Accounting

26. What is the main source of corporate financing in the United Kingdom?
capital markets
government grants
royal family

27. What is the greatest difference between Mexican accounting practice and American accounting practice?
The method of calculating earnings per share
The lack of conservatism in Mexican accounting standards
The treatment of inflation effects on financial statements
The accounting for exchange rate gains and losses

28. In what year was the Shanghai Stock Exchange reactivated?

29. According to the World Trade Organization, what was the size of international trade in 2003?
$7,000,000,000 (7 billion dollars)
$70,000,000,000 (70 billion dollars)
$37,000,000,000 (37 billion dollars)
$7,000,000,000,000 (7 trillion dollars)

31. What is a foreign currency transaction?
It is another name for an international transaction.
It is a transaction that involves payment at a date sometime in the future.
It is an economic event measured in a currency other than U.S. dollars.
It is a business deal denominated in a currency other than a company's domestic currency.

32. Under U.S. GAAP, foreign exchange losses should be recorded by:
debiting “Foreign Exchange Loss”
crediting “Foreign Exchange Loss”
debiting “Retained Earnings”
debiting “Sales Revenue”

33. Under U.S. GAAP, to qualify for hedge accounting which of the following conditions must be met?
There must be for
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Postby misu » Tue Jul 17, 2012 6:34 pm

Please do your own work. You learn better that way./
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