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Listed below are seven reasons why accounting practices differ across countries followed by a list of descriptions. Match each description with the best reason placing the

Listed below are seven reasons why accounting practices differ across countries followed by a list of descriptions. Match each description with the best reason placing the letter designating the reason in the space provided.

 

Reason:

a.   Legal system

b.   Tax laws

c.   Sources of financing

d.   Inflation

e.   Culture

f.    Political and economic ties

g.   Economic development

 

Description:

              _____  The extent of public disclosure depends on the secretiveness of society.

              _____   In some countries, asset values increase rapidly because of the general price level changes.

              _____  Countries share business activities and have political connections.

              _____  Some countries rely more heavily on debt capital than on equity capital to fund operations.

_____  Common law countries rely more heavily on public information.

_____  More developed economies have more complex business transactions.

              _____  Alignment between financial reporting and tax reporting rules.

 

 

 

44. Below are seven reasons for differences in accounting practices among countries. For each reason, at least two options are provided. For each reason, select the option that best describes the United States.

 

Reason

1. Legal system

Options

(a) Common law

(b) Code law

 

2. Tax laws

(a) Different tax and financial accounting rules

(b) Similar tax and financial accounting rules

 

 

3. Sources of financing

(a) More equity financing

(b) More debt financing

 

 

4. Inflation

(a) Low inflation

(b) High inflation

 

 

5. Culture

(a) Transparent

(b) Secretive

 

 

6. Political and economic ties

(a) British ties

(b) German ties

(c) Spanish ties

 

 

7. Economic development

(a) Developed economy

(b) Developing economy

(c) Under-developed economy

 

 

 

45. Below are seven reasons for differences in accounting practices among countries. For each reason, at least two options are provided. For each reason, select the option that best describes Germany.

 

Reason

1. Legal system

Options

(a) Common law

(b) Code law

 

2. Tax laws

(a) Different tax and financial accounting rules

(b) Similar tax and financial accounting rules

 

 

3. Sources of financing

(a) More equity financing

(b) More debt financing

 

 

4. Inflation

(a) Low inflation

(b) High inflation

 

 

5. Culture

(a) Transparent

(b) Secretive

 

 

6. Political and economic ties

(a) British ties

(b) German ties

(c) Spanish ties

 

 

7. Economic development

(a) Developed economy

(b) Developing economy

(c) Under-developed economy

Jan 25 2020 View more View Less

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