In Preparation for Admission to the European Union, Hungary, Poland

question 26

Multiple Choice

In preparation for admission to the European Union, Hungary, Poland, and the Czech Republic passed new accounting laws based on EU Directives. How were these new laws different from their previous accounting laws?

• A) The new laws are easier to enforce than the previous laws.
• B) The new accounting regulations are written in English, whereas the earlier accounting standards were written in Russian.
• C) The new laws are less flexible than their earlier accounting laws.
• D) The new laws are market-oriented whereas their earlier accounting laws were Soviet-style.

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Definitions:

First-In, First-Out

An inventory valuation method where the goods purchased or produced first are sold or used first.

Equivalent Units

A metric used in cost accounting to express the amount of work done by manufacturers who have partially completed units on hand at the end of an accounting period.

Work in Process-Assembly Department

Inventory account that tracks the cost of partially completed goods that are still in the production process in the assembly department.

Equivalent Unit

A concept used in cost accounting to represent a portion of work done on a product, quantified in terms of fully completed units.