Countries where companies rely on the stock market for their main source of capital are characterized as having: a. an equity-oriented market b. a stock and bond market c. a debt-equity market d. a debt-oriented market Countries where companies rely on bank financing for their main source of capital are characterized as having: a. an equity-oriented market b. a stock and bond market c. a debt-equity market d. a debt-oriented market 3 In equity-oriented countries, companies tend to: a. fear that the market will punish poor performance numbers b. underreport earnings c. make their numbers as positive as possible d. both a. and c. Major challenges facing accounting globally include: a. the environmental and social impact of business decisions b. the quality of financial reporting in emerging countries c. the single currency movement in the European Union d. both a. and b. The term accounting "harmonization" refers to the reduction of differences in financial reporting practices among countries, while accounting "convergence"; a refers to moving toward a single set of global standards b. means moving to two sets of standards, one for developed and another for developing nations c. has the same definition as "harmonization" d none of the above The organization that has emerged as the main vehicle for global accounting harmonization is: a the PCAOB b the FASB c. the IASB d the IOSCO