A Joint Memorandum of Understanding Between the International Accounting Standards

question 66

Multiple Choice

A joint Memorandum of Understanding between the International Accounting Standards Board (IASB) and US Financial Accounting Standards Board (FASB) ,published in 2006:

• A) agreed to maintain the status quo and retain international and US accounting standards in the form that they currently exist.
• B) identified a number of options to ensure complete consistency between international and US accounting standards by 2010.
• C) identified an intention to implement actions to identify and remove major accounting differences in specific areas by 2008.
• D) identified an agreement that international standards will be changed to accord with US standards, wherever there were key differences, by 2008.

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Definitions:

Sales Discounts

A reduction in the price of goods or services offered to a customer, intended to encourage prompt payment or increase sales.

Adjusting Entry

An accounting entry made into a company's general ledger at the end of an accounting period to record any unrecognized income or expenses for the period.

Physical Inventory

The process of counting the actual goods or materials a business holds in stock as a way to verify stock levels and value.

Estimated Returns Inventory

The projection of goods that are expected to be returned by customers within a specific period, considered in inventory and financial planning.