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Questions and Answers

Which century saw the systematization of accounting principles by Luca Pancioli?

XVI century

XVII century

XVIII century

XV century (correct)

What is the main purpose of financial statements?

To produce generally accepted principles within European public companies

To determine a unique accounting language and system of conventional rules

To facilitate the development of global financial markets

To provide information to stakeholders about a company's business (correct)

What are accounting principles?

The principles produced within European public companies

The agency for ruling the accounting principles and practices in the USA

The main source of information for stakeholders about a company's business

The rules for translating transactions into financial statements (correct)

What is the difference between standardization and harmonization in accounting?

Standardization means using the same accounting principles globally, while harmonization means using similar but not necessarily identical principles Signup and view all the answers

What was the Ordonnance de commerce in France in the XVII century?

A law that forced merchants to do regular bookkeeping Signup and view all the answers

What is the SEC and when was it established?

The Securities and Exchange Commission, established in 1934 to supervise the stock exchange Signup and view all the answers

What is the FASB and when was it established?

The Financial Accounting Standard Board, established in 1973 to rule accounting principles and practices in the USA Signup and view all the answers

What are International Accounting Principles?

Rules created to facilitate the development of global financial markets Signup and view all the answers

What is the IASB and when was it established?

The International Accounting Standards Board, established in 2000 to produce generally accepted principles within European public companies Signup and view all the answers

Which statement is true about financial statements?

They are the main source of information for stakeholders about a company's business Signup and view all the answers

What are accounting principles?

The rules for translating transactions into financial statements Signup and view all the answers

What is the purpose of International Accounting Principles?

To facilitate the development of global financial markets Signup and view all the answers

What are the two approaches for evening out financial information globally?

Standardization and harmonization Signup and view all the answers

What is the European Community and the IASB engaged in?

A journey to determine a unique accounting language and system of conventional rules Signup and view all the answers

What is the goal of the journey towards a universal accounting language?

To find a generally accepted and shared accounting language from a technical and meaning point of view Signup and view all the answers

Who systematized the accounting system we have today?

Luca Pancioli Signup and view all the answers

What did Italian merchants discover about bookkeeping?

The linkage between fraudulent insolvency and irregular bookkeeping Signup and view all the answers

What is the purpose of the SEC in the USA?

To supervise the stock exchange Signup and view all the answers

Study Notes

The Journey Towards a Global Accounting Language

Financial statements are the main source of information for stakeholders about a company's business.
Accounting principles are the rules for translating transactions into financial statements.
International Accounting Principles were created to facilitate the development of global financial markets.
The two approaches for even out financial information globally are standardization and harmonization.
The European Community and the IASB have been engaged in a journey to determine a unique accounting language and system of conventional rules.
The journey is getting to a universal accounting language that is generally accepted and shared from a technical and meaning point of view.
The accounting system we have today was inherited from Italian merchants and systematized by Luca Pancioli in the XV century.
The linkage between fraudulent insolvency and irregular bookkeeping was discovered by Italian merchants.
In the XVII century, France ruled the "Ordonnance de commerce" which forced merchants to do regular bookkeeping.
In the USA, the Securities and Exchange Commission (SEC) was established in 1934 to supervise the stock exchange.
The Financial Accounting Standard Board (FASB) was established in 1973 as the agency for ruling the accounting principles and practices in the USA.
The International Accounting Standards Board (IASB) was established in 2000 to produce generally accepted principles within European public companies.

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Description

Embark on a journey towards a universal accounting language with this quiz! Test your knowledge on the development of accounting principles, the history of bookkeeping, and the efforts towards standardization and harmonization of financial information globally. Challenge yourself with questions about the roles of international organizations such as the IASB and FASB, and discover the fascinating history behind the accounting system we use today. Ideal for accounting enthusiasts and professionals looking to expand their knowledge.