Question

1.

If most of a country's business financing comes from families, banks, and the government, what should we expect in terms of information disclosure to the public?

Multiple Choice

Relatively little disclosure because the public isn't a major factor

A great deal of disclosure because it will be the only way for interested parties to learn about the company

Complete openness of accounting records

No disclosure at all

2.

Which of the following is the primary role of an internal auditor?

Multiple Choice

To uncover errors, inefficiencies, and fraud

The prepare the financial budgets for the company

To ensure the adoption of IFRS by all foreign companies

To prepare the financial statements of the company

3.

Under IAS 38, which of the following items might qualify for capitalization as internally generated intangible assets?

Multiple Choice

Publishing titles

Brands

Customer lists

Market share

5.

Which of the following is a difference between the U.S. and other Anglo-Saxon countries in terms of accounting standards?

Multiple Choice

The U.S. standards are becoming more rigid than the U.K. standards.

The U.S. does not adhere to the "true and fair view" approach.

The U.S. is more private sector-oriented.

The U.S. always follows a conceptual framework when developing accounting standards.

Answer 1

1.If most of a country's business financing comes from families, banks, and the government, what should we expect in terms of information disclosure to the public?

Answer: - Relatively little disclosure because the public isn't a major factor

Reason: - Disclosure in financial statements are primarily focused on providing the users of financial statement transparency and better understanding. Since most of a country's business financing comes from families, banks, and the government, relatively little disclosure is only required because the public isn't a major factor.

2.Which of the following is the primary role of an internal auditor?

Answer: - To uncover errors, inefficiencies, and fraud

Reason: - The role of internal audit is to provide independent assurance that an organisation's risk management, governance and internal control processes are operating effectively. Thereby uncovering errors, inefficiencies and fraud.

3.Under IAS 38, which of the following items might qualify for capitalization as internally generated intangible assets?

Answer: - Market share

Reason: - Brands, publishing titles, customer lists are specifically barred from capitalization under IAS 38.

5.Which of the following is a difference between the U.S. and other Anglo-Saxon countries in terms of accounting standards?

Answer: - The U.S. standards are becoming more rigid than the U.K. standards.

Reason: - IFRS is more of a principle -based standards whereas US GAAP is more rigid, specific and rule based.