Question: Domestic accounting standards developed to meet the needs of domestic environments. Which of these factors did not influence accounting standards locally? 1. A litigious environment in the United States that led to a demand for more detailed standards in many cases. 2. High rates of inflation in some countries that resulted in periodic revaluation of fixed assets and other price-level adjustments or disclosures. 3. Income tax conformity in certain countries that no doubt greatly influenced domestic financial reporting. 4. Reliance on open markets as the principal means of intermediating capital flows that increased the demand for information to be included in financial reports in the United States. 5. The need to have standards different from the U.S. standards. The following items appeared in the accounting records of Triguero's, a retail music store that also sponsors concerts. Classify each of the items as an asset, liability, revenue, or expense from the company's viewpoint. Also indicate the normal account balance of each item. a. The albums, tapes, and CDs held for sale to customers. b. A long-term loan owed to Citizens Bank. c. Promotional costs to publicize a concert. d. Daily sales of merchandise sold. e. Amounts due from customers. f. Land held as an investment. g. A new fax machine purchased for office use. h. Amounts to be paid in 10 days to suppliers. i. Amounts paid to a mall for rent. The four key behavioral considerations in management accounting and control system design include all of the following except: a. integrating the organization's pay scale b. using a mix of short-term and long-term qualitative and quantitative performance measures c. empowering employees to be involved in decision making and MACS design d. developing an appropriate incentive system to reward performance
Question: Domestic accounting standards developed to meet the needs of domestic environments. Which of these factors did not influence accounting standards locally? 1. A litigious environment in the United States that led to a demand for more detailed standards in many cases. 2. High rates of inflation in some countries that resulted in periodic revaluation of fixed assets and other price-level adjustments or disclosures. 3. Income tax conformity in certain countries that no doubt greatly influenced domestic financial reporting. 4. Reliance on open markets as the principal means of intermediating capital flows that increased the demand for information to be included in financial reports in the United States. 5. The need to have standards different from the U.S. standards. The following items appeared in the accounting records of Triguero's, a retail music store that also sponsors concerts. Classify each of the items as an asset, liability, revenue, or expense from the company's viewpoint. Also indicate the normal account balance of each item. a. The albums, tapes, and CDs held for sale to customers. b. A long-term loan owed to Citizens Bank. c. Promotional costs to publicize a concert. d. Daily sales of merchandise sold. e. Amounts due from customers. f. Land held as an investment. g. A new fax machine purchased for office use. h. Amounts to be paid in 10 days to suppliers. i. Amounts paid to a mall for rent. The four key behavioral considerations in management accounting and control system design include all of the following except: a. integrating the organization's pay scale b. using a mix of short-term and long-term qualitative and quantitative performance measures c. empowering employees to be involved in decision making and MACS design d. developing an appropriate incentive system to reward performance
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA1: International Financial Reporting Standards
Section: Chapter Questions
Problem 6MCQ
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Transcribed Image Text:Question:
Domestic accounting standards developed to meet the
needs of domestic environments.
Which of these factors did not influence accounting
standards locally?
1. A litigious environment in the United States that led to a
demand for more detailed standards in many cases.
2. High rates of inflation in some countries that resulted in
periodic revaluation of fixed assets and other price-level
adjustments or disclosures.
3. Income tax conformity in certain countries that no doubt
greatly influenced domestic financial reporting.
4. Reliance on open markets as the principal means of
intermediating capital flows that increased the demand for
information to be included in financial reports in the United
States.
5. The need to have standards different from the U.S.
standards.
The following items appeared in the accounting records of
Triguero's, a retail music store that also sponsors concerts.
Classify each of the items as an asset, liability, revenue, or
expense from the company's viewpoint. Also indicate the
normal account balance of each item.
a. The albums, tapes, and CDs held for sale to customers.
b. A long-term loan owed to Citizens Bank.
c. Promotional costs to publicize a concert.
d. Daily sales of merchandise sold.
e. Amounts due from customers.
f. Land held as an investment.
g. A new fax machine purchased for office use.
h. Amounts to be paid in 10 days to suppliers.
i. Amounts paid to a mall for rent.
The four key behavioral considerations in management
accounting and control system design include all of the
following except:
a. integrating the organization's pay scale
b. using a mix of short-term and long-term qualitative and
quantitative performance measures
c. empowering employees to be involved in decision
making and MACS design
d. developing an appropriate incentive system to reward
performance
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