51.The primary professional organization for those accountants working in the industry is the:
52.In the Norwalk Agreement, the FASB and IASB pledged to:
A.Combine their organizations to form the BUSYB.
B.Make progress on specific MOU projects.
C.Achieve convergence by the year 2015.
D.Remove existing differences between their standards.
53.Which of the following is not a concern expressed by the SEC regarding IFRS adoption by the U.S.?
A.Need for the U.S. to have strong influence on the standard-setting process and ensure that standards meet U.S. needs.
B.The language barriers associated with cooperation among many countries in developing IFRS.
C.The high costs to companies of converting to IFRS.
D.The fact that many laws, regulations and private contracts reference U.S. GAAP.
54.The most political issue in the FASB's most recent deliberations and amendments to GAAP on business combinations was:
A.The negative effects on subsequent earnings of amortizing goodwill if firms were required to use the purchase method of accounting for the combination.
B.The negative effects on subsequent earnings of amortizing goodwill if firms were required to use the pooling method of accounting for the combination.
C.The unrealistic balance sheet assets that would be created if firms were required to use the purchase method of accounting for the combination.
D.The unrealistic balance sheet assets that would be created if firms were required to use the pooling method of accounting for the combination.
55.The primary historical reason for the FASB reversing its positions when political pressures occur is:
A.The cost of gathering data was prohibitive.
B.The difficulties in measurement were too great.
C.They have no authority in such situations.
D.The SEC did not support the FASB position.
56.The most recent example of the political process at work in standard-setting is the heated debate that occurred on the issue of:
A.Pension plan accounting.
B.Accounting for postretirement benefits other than pensions.
C.Accounting for business combinations.
D.Accounting for stock-based compensation.
57.Independent auditors express an opinion on the:
A.Fairness of financial statements.
B.Accuracy of financial statements.
C.Soundness of a company's future.
D.Quality of a company's management.
58.The possibility that the capital markets' focus on periodic profits may tempt a company's management to bend or even break accounting rules to inflate reported net income is an example of:
A.An ethical dilemma.
B.An accounting theory issue.
C.A technical accounting issue.
D.An auditor's responsibility to inform the SEC.
59.One of the elements that many believe distinguishes a profession from other occupations is the acceptance of responsibility by its members for the interests of those it serves, which is often articulated in:
A.Its conceptual framework.
B.Its code of ethics.
60.SFAC8 of the conceptual framework focuses on:
A.Objective and qualitative characteristics.
B.Presentation and disclosure.
C.Recognition and measurement.
D.Elements of financial statements.