8.One of Grays accounting values is Professionalism versus Statutory Control. Which country would you expect to be closest to the Statutory Control end of the spectrum?

Select one:

a. Australia

b. France

c. UK

d. USA

9.

The change that will increase reported profit (assuming inflation) is:

Select one:

a. A switch from the LIFO to the FIFO method of inventory valuation

b. A switch from the straight-line to the reducing balance method of depreciation - assuming new assets are being purchased

c. Reducing the estimated life of depreciable assets

d. All of the above will increase reported profit (assuming inflation)

10.

The statement that is true is:

Select one:

a. Politically sensitive firms are likely to overstate profits

b. Politically sensitive firms are likely to understate profits

c. It is more difficult to criticise a firm with higher profits for having an unfair level of government support

d. Smaller firms are expected to be more politically sensitive

11.

Which of the following would most likely be valued using a level 2 valuation?

Select one:

a. Gold

b. A building

c. Shares

d. A business unit