1. which of the following could explain why accounting is more conservative in some countries than in others? a. Accounting is oriented towards stockholders as a major source of financing b. Published financial statements are the basis for taxation c. A common law legal system is used d. Full disclosure in financial statement is emphasized 2. Which of the following is not a problem caused by differences in financial reporting practices across countries? a. Consolidation of financial statements by firms with foreign operations is more difficult b. Firms incur additional costs when attempting to obtain financing in foreign countries c. Firms face double taxation on income earned by foreign operations d. Comparisons of financial ratios across firms in different countries may not be meaningful. 3. Which of the following is not a reason for establishing international accounting standards? a. Some countries do not have the resources to develop accounting standards on their own b. Comparability is needed between companies operating in different areas of the world c. It would simplify the preparation of consolidated financial statement by multinational corporations d. Demand in the united sates is heavy for an alternative to U.S. generally accepted accounting principles