1 Which of the following best describes international

financial
1. Which of the following best describes international financial reporting standards?a. IFRS
describes the generally accepted accounting principles that are currently used by all companies
in the United States.b. IFRS consist only of standards that have been issued since the IASB
was formed in 2001.c. IFRS are considered to be more concept-based than U.S. GAAP.d. IFRS
will be required to be used in the United States beginning in 2014.2. Which of the following
statements is true?a. The FASB has consistently resisted the adoption of IFRS in the United
States for fear that it will lose its standard-setting authority.b. The requirement to use IFRS by
the European Union led to a significant increase in the global acceptance of IFRS.c. IFRS has
existed for nearly as long as U.S. GAAP; however, it only recently began to gain acceptance as
a body of high-quality accounting standards.d. The SEC is considering allowing foreign
companies who trade stock on the U.S. stock exchanges to use IFRS.3. Convergence of U.S.
GAAP and IFRS is best described as:a. The replacement of U.S. GAAP by IFRS.b. The
replacement of IFRS by U.S. GAAP.c. Changing existing U.S. GAAP so that any differences in
IFRS will be insignificant.d. Changing both existing U.S. GAAP and IFRS to reduce differences
and developing new GAAP through a joint standard-setting process.4. Which of the following
organizations has the responsibility to create IFRS?a. Financial Accounting Standards Boardb.
International Accounting Standards Committeec. International Accounting Standards Boardd.
Securities and Exchange Commission5. Which of the following is not an advantage of IFRS?a.
The use of IFRS should increase the comparability and transparency of financial information.b.
The use of IFRS will make it easier to access foreign capital markets.c. IFRS requires more
judgments than U.S. GAAP.d. IFRS is less conservative than U.S. GAAP so net income under
IFRS will generally be higher than net income under U.S. GAAP.6. Which of the following is not
a disadvantage of IFRS?a. IFRS will require significantly more training and education than
required for U.S. GAAP.b. The use of IFRS could be viewed as adopting a lower quality
standard.c. Due to cultural differences among countries, it will be difficult to ensure consistent
application and interpretation of IFRS.d. Different versions of IFRS exist that may cause
confusion for users of financial statements.7. With regard to the presentation of financial
information under IFRS, which of the following is true?a. The terminology on the balance sheet
and the income statement is the same under IFRS and U.S. GAAP.b. Under IFRS, the element
of the balance sheet are often presented in reverse order relative to U.S. GAAP, with
noncurrent assets presented before current assets and stockholders’ equity presented before
liabilities.c. Under IFRS, the elements of the income statement are often presented in reverse
order, with expenses presented first followed by revenues.d. IFRS do not require the
presentation of a statement of cash flows.8. Which of the following inventory costing methods is
not allowed under IFRS?a. FIFOb. Specific Identificationc. Average Costd. LIFO9. Which of the
following is true?a. IFRS allows property, plant, and equipment to be revalued upward if fair
value is higher than historical cost.b. IFRS contains more extensive guidance on revenue
recognition than U.S. GAAP.c. IFRS has a much more broad definition of cash than U.S.
GAAP.d. The accounting for research and development costs is identical under IFRS and U.S.
GAAP.10. Which of the following is true with regard to contingent liabilities?a. IFRS and U.S.
GAAP use the same terminology to refers to contingent liabilities.b. A contingent liability is
recognized under IFRS when it is more likely than not that the contingent event will occur.c.
Fewer events will be recognized as contingent liabilities under IFRS than under U.S. GAAP.d.

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 Provisions are contingent liabilities that are not recognized in the financial statements.View
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1 Which of the following best describes international financial
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