Question 1

What recent event has given the People's Republic of China an incentive to harmonize its accounting standards?

Accepted Answer

A)  Collapse of Arthur Andersen
B)  Membership in the NATO
C)  Admission to the WTO
D)  Establishment of the CSRC

Question 2

What functional area dominates the accounting profession in Germany?

Accepted Answer

A)  Taxation
B)  Auditing
C)  Financial reporting
D)  Managerial Accounting

Question 3

What links the components of a Japanese keiretsu?

Accepted Answer

A)  a governmental agency
B)  a common industry affiliation
C)  a common market
D)  a bank D

Question 4

The first professional accounting association in the United Kingdom was established in 1853 in what city?

Accepted Answer

A)  London
B)  Belfast
C)  Edinburgh
D)  Canterbury

Question 5

Among the world's nations,where does the People's Republic of China rank in terms of receiving foreign direct investment?

Accepted Answer

A)  First
B)  Fourth
C)  Tenth
D)  Fifth

Question 6

Which of the following countries has NOT had its accounting systems significantly influenced by Germany?

Accepted Answer

A)  Switzerland
B)  Denmark
C)  Japan
D)  France

Question 7

Why do German companies willingly take a conservative position in calculating income?

Accepted Answer

A)  To minimize tax
B)  To keep employees from asking for higher wages.
C)  To stabilize income from year to year for dividend purposes.
D)  All of the above

Question 8

Which term refers to an affiliate relationship between an accounting/auditing firm and its sponsoring organization?

Accepted Answer

A)  parent/subsidiary
B)  hooked up
C)  guanxi
D)  brother/sister

Question 9

While German tax computations are based on financial accounting standards,this is not true in the United Kingdom. Why doesn't the U.K.base its tax code on financial accounting standards?

Accepted Answer

A)  The United Kingdom tries to avoid being like Germany whenever it can.
B)  The United Kingdom had a tax code long before it had financial accounting standards.
C)  Financial accounting standards in the United Kingdom are too conservative to be practical for tax purposes.
D)  Germany follows the directives of the European Union,whereas the United Kingdom has not adopted the directives of the EU.

Question 10

Which of the following statements is NOT required in Mexico?

Accepted Answer

A)  Statement of Financial Position
B)  Statement of Cash Flows
C)  Statement of Changes in Financial Position
D)  Income Statement B

Question 11

What agency is responsible for setting accounting standards and regulations in the People's Republic of China?

Accepted Answer

A)  Chinese Institute of CPAs
B)  Ministry of Finance
C)  Chinese Security Regulatory Commission
D)  State Council

Question 12

The population of Japan is about 1/3 the population of the United States. There are approximately 250,000 CPAs in the U.S. What is the approximate number of CPAs in Japan?

Accepted Answer

A)  250,000
B)  100,000
C)  85,000
D)  15,000

Question 13

What is the primary role of the Financial Reporting Council in the United Kingdom?

Accepted Answer

A)  Compliance oversight
B)  Setting standards for accounting practice
C)  Policy over the accounting standard setting process
D)  All of the above

Question 14

Why is accounting conservatism NOT a basic principle underlying accounting standards in the People's Republic of China?

Accepted Answer

A)  It is perceived to manipulate accounting numbers for the benefit of owners by exploiting workers.
B)  It too closely reflects the views of the masses,which are not considered in establishing accounting standards.
C)  Conservatism has been shown to cause economic hardship for companies operating in China.
D)  Conservatism overstates assets,which is perceived to distort financial results.

Question 15

Which of the following statements is true about accounting in China?

Accepted Answer

A)  Accounting has a long history,dating back thousands of years.
B)  The first professional accounting body in the People's Republic of China was established in 1988.
C)  The philosopher Confucius taught about accounting.
D)  All of the statements above are true.

Question 16

How does Japanese GAAP differ from IFRS with respect to costs of testing a fixed asset prior to use?

Accepted Answer

A)  Japanese GAAP requires expensing of pre-operating costs,whereas IFRS allows capitalization.
B)  Japanese GAAP requires expensing of pre-operating costs,where IFRS requires capitalization.
C)  Japanese GAAP requires capitalizing pre-operating costs,whereas IFRS requires expensing.
D)  Japanese GAAP allows capitalizing pre-operating costs,whereas IFRS requires expensing. D

Question 17

The People's Republic of China made economic reforms in the 1980s to encourage international trade. What impact have these reforms made on accounting?

Accepted Answer

A)  Increased the demand for accounting information from investors.
B)  Increased the supply of publicly available accounting information from Chinese companies.
C)  Changed the nature of auditing in the PRC.
D)  All of the above are true.

Question 18

In addition to the 16 Chinese Accounting Standards,what else forms the structure of financial reporting in modern China?

Accepted Answer

A)  IFRS
B)  U) S.GAAP
C)  ASBE
D)  CICPA

Question 19

What reason is given for the stagnation of accounting development during the "Cultural Revolution" in China (1966-1976) ?

Accepted Answer

A)  Over-simplification of accounting was pursued to make it accessible to a broad populace.
B)  There was very little business being transacted in China during the Cultural Revolution.
C)  Businesses in China were converting to international accounting standards during this period of time so they stopped developing new standards.
D)  Auditors took over the development of accounting practice.

Question 20

What is the reason given for a relatively low emphasis on public disclosure of financial information in Japan?

Accepted Answer

A)  Significant reliance on bank credit for financing
B)  Long-term cross-corporate ownership of stock
C)  Income is not viewed as a measure of corporate performance.
D)  All of the above

Exam 6: Comparative Accounting

What recent event has given the People's Republic of China an incentive to harmonize its accounting standards?

Correct AnswerverifiedShow Answer

What functional area dominates the accounting profession in Germany?

Correct AnswerverifiedShow Answer

What links the components of a Japanese keiretsu?

Correct AnswerverifiedD

The first professional accounting association in the United Kingdom was established in 1853 in what city?

Correct AnswerverifiedShow Answer

Among the world's nations,where does the People's Republic of China rank in terms of receiving foreign direct investment?

Correct AnswerverifiedShow Answer

Which of the following countries has NOT had its accounting systems significantly influenced by Germany?

Correct AnswerverifiedShow Answer

Why do German companies willingly take a conservative position in calculating income?

Correct AnswerverifiedShow Answer

Which term refers to an affiliate relationship between an accounting/auditing firm and its sponsoring organization?

Correct AnswerverifiedShow Answer

While German tax computations are based on financial accounting standards,this is not true in the United Kingdom. Why doesn't the U.K.base its tax code on financial accounting standards?

Correct AnswerverifiedShow Answer

Which of the following statements is NOT required in Mexico?

Correct AnswerverifiedB

What agency is responsible for setting accounting standards and regulations in the People's Republic of China?

Correct AnswerverifiedShow Answer

The population of Japan is about 1/3 the population of the United States. There are approximately 250,000 CPAs in the U.S. What is the approximate number of CPAs in Japan?

Correct AnswerverifiedShow Answer

What is the primary role of the Financial Reporting Council in the United Kingdom?

Correct AnswerverifiedShow Answer

Why is accounting conservatism NOT a basic principle underlying accounting standards in the People's Republic of China?

Correct AnswerverifiedShow Answer

Which of the following statements is true about accounting in China?

Correct AnswerverifiedShow Answer

How does Japanese GAAP differ from IFRS with respect to costs of testing a fixed asset prior to use?

Correct AnswerverifiedD

The People's Republic of China made economic reforms in the 1980s to encourage international trade. What impact have these reforms made on accounting?

Correct AnswerverifiedShow Answer

In addition to the 16 Chinese Accounting Standards,what else forms the structure of financial reporting in modern China?

Correct AnswerverifiedShow Answer

What reason is given for the stagnation of accounting development during the "Cultural Revolution" in China (1966-1976) ?

Correct AnswerverifiedShow Answer

What is the reason given for a relatively low emphasis on public disclosure of financial information in Japan?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
D

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
D

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified