standards is characterized as a political process.
54.
Award: 10.00 points
The International Accounting Standards Board:
Promotes the use of high-quality, understandable global accounting standards.
Can overrule the FASB when their policies disagree.
Has its headquarters in Geneva.
Was the predecessor to the IASC.
References
Multiple Choice Learning Objective: 01-03 Define
generally accepted accounting
principles (GAAP) and discuss
the historical development of
accounting standards, including
convergence between U.S. and
international standards.
Difficulty: 1 Easy Learning Objective: 01-11 Discuss
the primary differences between
U.S. GAAP and IFRS with respect
to the development of
accounting standards and the
conceptual framework
underlying accounting
standards.
55.
Award: 10.00 points
Which of the following is not a provision of the Public Company Accounting Reform and investor Protection Act of 2002?
Corporate executive accountability
Auditor rotation
Reporting on adequacy of internal controls
All of these answer choices are correct.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-05 Explain factors that encourage high-
quality financial reporting.
56.
Award: 10.00 points
The primary professional organization for those accountants working in industry is the:
AICPA.
IMA.
AAA.
IIA.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-05 Explain factors that encourage high-
quality financial reporting.
57.
Award: 10.00 points
Regarding convergence of accounting standards, the FASB and IASB:
Have achieved full convergence with respect to financial instruments.
Are not likely to achieve full convergence of accounting standards in the near future.
Do not intend to work together to achieve convergence where possible.
Have agreed to combine their organizations to form the BUSYB.
References
Multiple Choice Learning Objective: 01-03 Define
generally accepted accounting
principles (GAAP) and discuss
the historical development of
accounting standards, including
convergence between U.S. and
international standards.
Difficulty: 1 Easy Learning Objective: 01-11 Discuss
the primary differences between
U.S. GAAP and IFRS with respect
to the development of
accounting standards and the
conceptual framework
underlying accounting
standards.
58.
Award: 10.00 points
Which of the following is not a concern regarding IFRS adoption by the U.S.?
The fact that many laws, regulations and private contracts reference U.S. GAAP.
Geographic dispersion of standard setters makes it unlikely that boards can interact to achieve consensus.
The high costs to companies of converting to IFRS.
Need for the U.S. to have strong influence on the standard-setting process and ensure that standards meet U.S. needs.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-03 Define generally accepted accounting
principles (GAAP) and discuss the historical development of
accounting standards, including convergence between U.S. and
international standards.
59.
Award: 10.00 points
The most political issue in the FASB's deliberations and amendments to GAAP with respect to accounting for employee stock options was:
The disclosure of options-related compensation expense in the notes to the financial statements.
Accounting for options-related compensation expense relating to options that have not yet been granted to employees.
The negative effects (especially on the earnings of high-tech companies) if they had to recognize compensation expense in an amount equal to
the fair value of the options.
The negative effects on assets of recognizing options-related compensation expense in equity.
References
Multiple Choice Difficulty: 3 Hard Learning Objective: 01-03 Define generally accepted accounting
principles (GAAP) and discuss the historical development of
accounting standards, including convergence between U.S. and
international standards.
60.
Award: 10.00 points
The private sector has sometimes been forced to change accounting standards because the:
Difficulties in measurement required by the standard were too great.
SEC did not agree with a particular standard issued by the private sector.
Profit-oriented companies withdrew financial support for the private sector body that set the standards.