1.What accounting norm, as defined by Gray, was closely tied to the Parmalat scandal in Italy?

a.Professionalism

b.Conservatism

c.Secrecy

d.Uniformity

2.Intangible Assets, such as copyrights or patents, being held for resale are reported in which way under US GAAP and IFRS, respectively?

a.Intangible Assets under both

b.Inventory under both

c.Intangible Assets under GAAP and Inventory under IFRS

d.Inventory under GAAP and Intangible Assets under IFRS

3.What are the rules about LIFO under US GAAP and IFRS?

a.LIFO is allowed under GAAP, but IRS rules state that when it is used for taxes it must be used for other reporting; IFRS does not allow LIFO.

b.LIFO is allowed under GAAP; IFRS does not allow LIFO unless it is being used for tax purposes.

c.LIFO is allowed under GAAP; LIFO is not allowed under IFRS

4.If inventory is written down, can it later be written back up?

a.Under GAAP, no; under IFRS, yes

b.Under IFRS no; under GAAP, yes

c.Inventory can be written back up, but only to its original cost under both standards.

d.Write-downs are always permanent because of the conservatism principle.

5.How are costs for maintenance and repair accounted for, if they do not extend the useful life or productive potential for assets?

a.They are expensed under US GAAP and IFRS

b.They are capitalized under US GAAP and IFRS

c.They are expensed under US GAAP but capitalized under IFRS

d.If the economic value of the repairs are material beyond the critical operability threshold, they are capitalized. If they are immaterial or material but below the threshold, they are expensed.

6.When applying the revaluation rule under IFRS, how is fair value defined?

a.Fair value is the cost at which the asset could be sold, less a typical brokerage fee

b.Fair value is the amount at which it could be exchanged in an arms-length transaction.

c.Fair value is the replacement cost

d.Fair value is the replacement cost, less costs required to prepare the asset for sale.

7.Which of the following is a public sector entity?

a.A bank whose stocks trade on the public stock exchange

b.A manufacturer that trades on the NYSE and that is regulated by the federal energy regulatory commission

c.The State of Wyoming

d.All of the above are public sector entities