Reference no: EM131795483

1. Which of the following statements regarding international standards for municipal accounting are true?

I. International standards are codified by an agency authorized by resolution of the United Nations General Assembly, the International Public Sector Accounting Standards Board, or IPSASB.

II. International standards are codified by the IPSASB, a private association chartered in Switzerland.

III. IPSASB standards follow International Financial Reporting Standards, IFRS, unless a public difference in for-profit and government activities warrants a departure.

IV. GASB standards are generally consistent with IPSASB standards.

a. I only.

b. I and IV only.

c. II only.

d. II, III, and IV only.

2. Which of the following statements regarding international standards for municipal accounting are false?

I. IPSASB standards do not apply to government business enterprises.

II. IPSABB procedures include notice of proposed standards and consideration of comments by interested parties.

III. The primary language of IPSASB standards is French.

IV. IPSASB standards are authoritative for the North Atlantic Treaty Organization.

a. I and III only.

b. II only.

c. III only.

d. I and IV only.

3. What is the purpose of IPSASB standards?

a. Support resource allocation decisions by governments.

b. Impose uniform standards on local governments in all jurisdictions.

c. Require businesses operated by local governments to apply accrual accounting.

d. Encourage local governments to evolve unique standards adapted to local circumstances.

4. Which of the following statements is true?

a. International public sector accounting standards are codified by the International Public Sector Accounting Board (IPSAB), which is supported by the International Federation of Accountants (IFA).

b. IFA also supports standard setting boars for auditing standards, accounting ethics, ethics, and diversity in accounting service providers.

c. IFA ethical standards are more rules-based than the principals-based rules enforced by the AICPA.

d. No national body of CPAs has adopted ethical standards based on IFA supported ethical standards.

5. International accounting standards for state and local government are needed because:

a. State and local governments sometimes require access to foreign capital markets.

b. Local cultural differences are less important in global markets.

c. Enforcement of international law requires uniform local law.

d. All of the above.

e. None of the above.