PERTEMUAN 3
1. For purposes of financial analysis it is important to assess the differential impact of
accounting principles on
a. Return on equity
b. Professionalism
c. Individualism
d. Power distance
2. The most popular exchange to be listed on is:
a. Nasdaq
b. New York
c. Euronext
d. London
3. In similar economic environments or situations
a. Accounting diversity is logical
b. Accounting diversity is illogical and leads to non-comparable results
c. Results may or may not be comparable
d. Accounting treatment does not matter
4. Problems and costs arising from international accounting diversity
a. Are not restated by financial statement users
b. Affect 95 percent of financial statement users according to Choi and Levich
c. Are very real
d. Affect 25 percent of financial statement users according to Choi and Levich
5. In attempting to value a foreign corporation, there is a tendency
a. Not to restate the financial statements
b. To use the London exchange market values
c. To be conservative
d. To look at earnings from a home country perspective
6. Historical cost is frequently modified by revaluations in
a. The United States.
b. The Asian countries.
c. The United Kingdom and the Netherlands.
d. GERMANY.
7. R&D costs are required to be expensed immediately in
a. The Asian countries.
b. The United States.
c. SWEDEN.
d. The United Kingdom.
8. Goodwill
a. Is amortized in the United States
b. Is immediately expensed in Japan
c. Is amortized in Britain
d. Is subject to an impairment test in Britain.
9. Intangibles, such as brands, publishing rights, and patents are generally capitalized
except in
a. The United States.
b. The Asian countries.
c. Switzerland
d. Sweden.
10. The treatment of inventory in Britain differs from that of the United States in that
a. The British approach to inventory measurement is much less restrictive.
b. FIFO is not permitted in Britain.
c. LIFO is not permitted in Britain.
d. In the United States, LIFO is not permitted.