One motivation for reducing differences in accounting practices across countries is to:
A. Reduce companies' tax burdens.
B. Decrease the flow of international capital.
C. Make it easier for investors to compare companies from different countries.
D. Allow greater competition among companies.
Answer: C
You might also like to view...
When a fiscal year that starts and ends at the time the stock of merchandise is normally at its lowest level is selected, it is known as a(n)
a. natural business year. b. calendar year. c. base year. d. accounting cycle.
The receipt of dividends from an investee would be classified as ____________________ activities in the statement of cash flows
Fill in the blank(s) with correct word
Conceptual guidance in U.S. GAAP refers to the selling entity having earned the revenues (that is, having completed the earnings process). IFRS refers to
a. transferring the risks and rewards of ownership to customers (in the case of revenues involving goods). b. having rendered services (in the case of revenues involving services). c. measuring the costs of any obligations that the seller has not performed at the time it recognizes revenue with reasonable reliability. d. all of the above. e. none of the above.
Answer the following statements true (T) or false (F)
1. Assets are either financed through liabilities or equity. 2. The accrual accounting method registers revenues billed when the actual cash is received; and registers expenses as incurred (accrued) but not necessarily as they are paid. 3. The balance sheet allows venture owners to assess how healthy the business is at a point in time. 4. Assets are defined as the tangible property that the venture owns and has accounting value. 5. Current assets represent the most liquid assets of a venture, meaning they can more easily be turned into cash.