Question No. 1

What is one of the primary purposes of the International Accounting Standards Board (IASB)?

ATo develop a single set of high quality and enforceable global accounting standards

BTo align US standards and International Accounting Standards Board (IASB) standards

CTo appoint Standards Advisory Council (SAC) members

DTo monitor International Accounting Standards Board (IASB) effectiveness

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Correct Answer: A

Question No. 2

Which of the following is a benefit of moving toward a single set of standards?

ACreate equity across the economies of different countries

BReduce the number of cross-border capital flows

CGreater comparability between companies equals lower cost to investors

DLess competition among exchanges

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Correct Answer: C

Question No. 3

Who appoints International Accounting Standards Board (IASB) members?

AStandards Advisory Council (SAC)

BInternational Accounting Standards Committee (IASC) Foundation

CInternational Financial Reporting Interpretations Committee (IFRIC)

DInternational Accounting Standards Board (IASB) staff

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Correct Answer: B

Question No. 4

Which statement below most accurately describes a primary purpose of the International Accounting Standards Committee (IASC) Foundation?

AApproves principles-based standards and informs International Accounting Standards Board (IASB) of implications of proposed standards

BOversees standards set for the public sector

CMonitors International Accounting Standards Board (IASB)'s effectiveness, raise funds, approve budget, responsible for constitution

DProvides advice to International Accounting Standards Board (IASB) on priorities

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Correct Answer: C

Question No. 5

Which statement below most accurately describes a primary purpose of the Standards Advisory Council (SAC)?

AInforms International Accounting Standards Board (IASB) of implications of proposed standards

BAppoints International Accounting Standards Board (IASB) members

CApproves principles-based standards but does not issue detailed application guidelines

DHas the sole responsibility for setting standards

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Correct Answer: A

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