accounting questions! please help!?

Question

1)Assets on the balance sheet are recorded at market value or replacement cost - True or False
2)GAAP are identical in most developed countries - T or F?
3)Accounting measures/reports financial data for profit-making businesses as well as not-for-profit orgs - T or F?
4)Managers who commit accounting fraud may be fined but can't be charged with a crime punishable by jail time - T or F?
5)Using accrual basis of accounting, a company recognizes expenses when they are paid - T or F?
6)Accrual basis accounting records revenues when earned and expenses when incurred, regardless of when the related cash is received or paid - T or F?

Any help is greatly appreciated!! Thank you!! :0)

Answer 1

1) False. Certain property, plant & equipment are still recorded at cost less accd depn. It's just that you have to perform the impairment test and recognise any impairment

2) This one is tricky cos of the word "most". If they had said "all" developed countries the ans wld have been False, but since they said "most" I would say it's True. All of Europe and much of Asia and Australia follow IFRS. Only USA and its ex-colonies follow US GAAP. The qn didn't say US GAAP. It just says GAAP and IFRS are GAAPs.

3) True
4) False. Look what happened to the CEOs of Enron and Worldcom
5) False. Look at the next qn and you'd know why
6) True.

Answer 2

1. False
2. False (but they are working to get that way)
3. True
4. False
5. False
6. True