INTERNATIONAL ACCOUNTING FINAL EXAM
QUESTIONS
GAAP - Answers -Generally Accepted Accounting Principles
Accounting Period - Answers -Period of time between financial statements
Stages of Accounting Period - Answers -Pre- Step of closing accounts
1. Journalize
2. Post journal entries
3. Adjust
4. Trial Balance
Accounting began in - Answers -Venice 1400s
IFRS - Answers -International Financial Reporting Standards
Convenience Statements - Answers -describes annual reports that are prepared in the
foreign user's language and currency while retaining the home-country accounting
principles (least expensive)
Reconciliation statements - Answers -shows the financial results using a different
reporting system (IASB vs. FASB, etc.)
Statement of Retained Earnings - Answers -Retained earnings + net income or - net
loss - dividends
Contra asset - Answers -is an account related to an asset that is an offset or reduction
to the asset's balance. Accumulated Depreciation is a contra-account to the equipment
and buildings accounts.
A trial balance assures - Answers -debits = credits
Common Law - Answers -A system of law based on precedent and customs (British,
American, Australian, Canadian)
Code Law - Answers -A system of law where the rules are written in the form of statutes
(legislation) (Germany, Spain, France)
Government sets the accounting standards in - Answers -Code based countries
Presents fairly - Answers -assessment that the information provided in financial
statements represents the actual financial situation in all material aspects; immaterial
misstatements may not be detected
, In true and fair view vs presents fairly - Answers -in true and fair view focuses on the
ethics as well as the standards
Factors for influencing accounting standards - Answers -Political ties
Micro vs Macro
Legal system
Source of Financing
Taxation
Inflation
Religion
Debit balance - Answers -a condition that occurs when the total of the debits in an
account is larger than the total of the credits in that account
Nobes - Answers -Macro/Micro (opinion)
Statutory Code - Answers -(In code law) Systems that rely on compliance with legal
requirements
Congruent (code law) - Answers -When national tax rules and accounting standards are
similar
example of a country that requires a high level of transparency in financial statements
under their national GAAP - Answers -UK
Hofstede - Answers -Uncertainty avoidance
masculinity
Individualism
Tolerance for power distance
Source of accounting standards in common law countries - Answers -Professional
accounting organizations
Definition of Convergence - Answers -refers to both a goal and a process that has taken
on different viewpoints
Costa Rica in Hofstede and Doupnik & Sulter classification is in a - Answers -unique
grouping
Under Hofstede, The US and UK and ranks - Answers -very similar
Example of country that exhibits high preference of accounting standards that protect
secrecy and support a conservative long term orientation - Answers -Japan
Countries where capital financing is from a few large banks is called - Answers -debt
based
QUESTIONS
GAAP - Answers -Generally Accepted Accounting Principles
Accounting Period - Answers -Period of time between financial statements
Stages of Accounting Period - Answers -Pre- Step of closing accounts
1. Journalize
2. Post journal entries
3. Adjust
4. Trial Balance
Accounting began in - Answers -Venice 1400s
IFRS - Answers -International Financial Reporting Standards
Convenience Statements - Answers -describes annual reports that are prepared in the
foreign user's language and currency while retaining the home-country accounting
principles (least expensive)
Reconciliation statements - Answers -shows the financial results using a different
reporting system (IASB vs. FASB, etc.)
Statement of Retained Earnings - Answers -Retained earnings + net income or - net
loss - dividends
Contra asset - Answers -is an account related to an asset that is an offset or reduction
to the asset's balance. Accumulated Depreciation is a contra-account to the equipment
and buildings accounts.
A trial balance assures - Answers -debits = credits
Common Law - Answers -A system of law based on precedent and customs (British,
American, Australian, Canadian)
Code Law - Answers -A system of law where the rules are written in the form of statutes
(legislation) (Germany, Spain, France)
Government sets the accounting standards in - Answers -Code based countries
Presents fairly - Answers -assessment that the information provided in financial
statements represents the actual financial situation in all material aspects; immaterial
misstatements may not be detected
, In true and fair view vs presents fairly - Answers -in true and fair view focuses on the
ethics as well as the standards
Factors for influencing accounting standards - Answers -Political ties
Micro vs Macro
Legal system
Source of Financing
Taxation
Inflation
Religion
Debit balance - Answers -a condition that occurs when the total of the debits in an
account is larger than the total of the credits in that account
Nobes - Answers -Macro/Micro (opinion)
Statutory Code - Answers -(In code law) Systems that rely on compliance with legal
requirements
Congruent (code law) - Answers -When national tax rules and accounting standards are
similar
example of a country that requires a high level of transparency in financial statements
under their national GAAP - Answers -UK
Hofstede - Answers -Uncertainty avoidance
masculinity
Individualism
Tolerance for power distance
Source of accounting standards in common law countries - Answers -Professional
accounting organizations
Definition of Convergence - Answers -refers to both a goal and a process that has taken
on different viewpoints
Costa Rica in Hofstede and Doupnik & Sulter classification is in a - Answers -unique
grouping
Under Hofstede, The US and UK and ranks - Answers -very similar
Example of country that exhibits high preference of accounting standards that protect
secrecy and support a conservative long term orientation - Answers -Japan
Countries where capital financing is from a few large banks is called - Answers -debt
based
