What Is Not a Reason That Accounting Standards May Differ

question 29

Multiple Choice

What is not a reason that accounting standards may differ across countries?

• A) Governments.
• B) Language.
• C) Culture.
• D) Past practice.

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Definitions:

Net Capital Spending

The total spending on fixed assets minus the proceeds from the sale of fixed assets over a period.

Canadian GAAP

Generally Accepted Accounting Principles in Canada, a set of accounting standards for financial reporting by Canadian companies.

Fair Value Accounting

An accounting approach where companies measure and report the value of certain assets and liabilities on the basis of their actual or estimated fair market price.