Test Bank Advanced Accounting

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JETER/ ADVANCED ACCOUNTING CHAPTER 11 INTERNATIONAL FINANCIAL REPORTING STANDARDS TEST BANK MULTIPLE CHOICEConceptual 1. The goals of the International Accounting Standards Committee include all of the following except a. To improve international accounting. b. To formulate a single set of auditing standards to be applied in all countries. c. To promote global acceptance of its standards. d. To harmonize accounting practices between countries. 2. Which of the following is true about the FASB after the mandatory adoption of IFRS by US companies a. The FASB will serve in an advisory capacity to the IASB. b. The FASB will remain the designated standard-setter for US companies, but incorporate IFRS into US GAAP. c. The role of the FASB…show more content…
d. IFRS requires two years of comparative income statements while under US GAAP, three years of income statements are required. 12. The major difference between IFRS and US GAAP in accounting for inventories is that a. US GAAP prohibits the use of specific identification. b. IFRS requires the use of the LIFO cost flow assumption. c. US GAAP prohibits the use of the LIFO cost flow assumption d. US GAAP allows the use of the LIFO cost flow assumption. 13. One difference between IFRS and GAAP in valuing inventories is that a. IFRS, but not GAAP, allows reversals so that inventories written down under lower-of-cost-or-market can be written back up to the original cost . b. GAAP defines market value as replacement cost where IFRS defines market as the selling price. c. GAAP strictly adheres to the historical cost concept and does not allow for write-downs of inventory values while IFRS embraces fair value. d. IFRS, but not GAAP, requires that inventories be valued at the lower of cost or market. 14. In accounting for research and development costs. a. the general rule under both US GAAP and IFRS is that research and development costs should be expensed as incurred . b. IFRS generally expenses all research and development costs while US GAAP expenses research costs as incurred but capitalizes development costs once technological and economic feasibility has been demonstrated. c. US GAAP generally expenses all research and development costs while IFRS expenses research costs

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