46. The IASC does not have authority to enforce its standards, but these standards have been adopted in whole or in part by many countries.
ANS: T PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Harmonization of International Accounting Standards KEY: Bloom's: Knowledge
NOT: Time: 1 min.
47. Domestic accounting standards have developed to meet the needs of international environments.
ANS: F PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Harmonization of International Accounting Standards KEY: Bloom's: Knowledge
NOT: Time: 1 min.
48. In the United States, the issue of financial reporting standards for small and medium-sized entities (SME) has been debated for many years. These debates did not result in separate standards for SME.
ANS: T PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Financial Reporting Standards for Small and Medium-Sized Entities (SMEs)
KEY: Bloom's: Knowledge NOT: Time: 1 min.
49. The IASB published an IFRS for SMEs in 2009.
ANS: T PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Financial Reporting Standards for Small and Medium-Sized Entities (SMEs)
KEY: Bloom's: Knowledge NOT: Time: 1 min.
PROBLEM
1. Required:
State the accounting principle or assumption that is most applicable.
| a. | The company uses the same accounting principle from period to period. | |
| b. | Financial statements are prepared periodically. | |
| c. | Subscriptions paid in advance are recorded as unearned subscription income. | |
| d. | All significant financial transactions are reported. | |
| e. | Personal transactions of the stockholders are not recorded on the company's financial statements. | |
| f. | Land is recorded at $10,000, which was the amount paid. Current value of the land is $25,000. | |
| g. | The accountants determine that the company is in danger of going bankrupt and therefore refuse to certify the statements as prepared according to generally accepted accounting principles. | |
| h. | The company loses a major customer and does not record a loss. | |