© 2000 John Petroff
|
|
© 2000 John Petroff |
Questions for Chapter 7 Old Accounting Systems
Review questions
Q-7A.
Can the 1995 Russian accounting system be described as dictated
market economy or communist dogma? Discuss.
Q-7A. Is the official accounting
system in Russia followed to the letter by practitioners?
Q-7A1.1
Are Russian accounting rules set by an association of professionals
or by a ministry?
Q-7A1.2 Do Russian accounting
rules give firms the freedom to work out their own accounting
policy?
Q-7A1.3 What are the areas
the a Russian firm's accounting policy deals with?
Q-7A1.4 What are the three
types of accounting in Russian accounting system?
Q-7A1.5 How are resources
classified in the Russian accounting system?
Q-7A1.6 How are the sources
of funds classified in Russian accounting system?
Q-7A1.7 Is a law that regulates
the documentation that Russian firms must have for accounting
entries?
Q-7A1.8 Under Russian rules
when must an inventory be taken?
Q-7A1.9 What are off-balance
sheet accounts in the Russian accounting system?
Q-7A1.10 What is the name
given to accounts for the items not listed in a balance sheet
in the Russian accounting system?
Q-7A1.11 What are analytical
accounts in the Russian accounting system?
Q-7A1.12 Is "the composition
of expenses allowable in the cost of goods produced and determination
of results of operations subject to tax on profits" determining
the cost of goods sold for tax purposes or for accounting purposes?
Q-7A1.13 How often must a
Russian firm prepare its balance sheet?
Q-7A1.14 Do all Russian firms
have to use the same balance sheet format?
Q-7A1.15 For who does the
Russian law require the firms prepare financial statements?
Q-7A1.16 Do all Russian firms
have the same fiscal year?
Q-7A1.17 What type of documents
must accompany Russian financial statements submitted to the Ministry
of Finance?
Q-7A2.1
What are the goals of Russian approach to financial analysis and
the accounting that make it possible?
Q-7A2.2 What is the item
of the balance sheet which is major determinant adequate performance
in the Russian financial analysis?
Q-7A2.3 What other signs
are also indicative for Russian financial analysis?
Q-7A2.4 How can the choice
of key performance indicators in Russian financial analysis be
explained by communist imperative to control its productive units?
Q-7A2.5 What are the key
indicators that measured communist production?
Q-7A3.1
Why do corporate accountant know that inventory must be taken
very often, occasionally as often as weekly?
Q-7A3.2 What are the items
the accounting policy of a Russian firm really deals with?
Q-7A3.3 Does Russian management
have the mandate to write off assets as soon as they are determined
to be worthless?
Q-7A3.5 What is necessary
to write off an asset under Russian accounting rules?
Q-7A3.6 How did inflation
affected Russian accounting?
Q-7A3.7 How does the restriction
on overtime salary affect accounting?
Q-7A3.8 Give examples of
areas where Russian management conspires with accountants for
smooth running of business?
Q-7A3.9 How did communist
government production target affect the work of accountants? Do
such practices still used today?
Q-7A3.10 Why are Russian
accountants often unable to pay salaries?
Q-7A3.11 Are purchases for
cash allowed in Russia? Why not?
Q-7A3.12 What are the reasons
of the payments crisis in Russia?
Q-7A3.13 What are the consequences
of the Russian payments crisis?
Q-7A3.14 Why are bankrupt
Russian firms not dissolved?
Q-7A3.15 How does the payments
crisis affect Russian accountants?
Q-7A3.16 How is the work
of Russian accountants influenced by management's desire to not
show profits?
Q-7A3.17 What are some of
the methods Russian accountant hide revenues?
Q-7A3.18 What are some of
the methods Russian accountant modify expenses?
Q-7B.1
Is there evidence that indicates that the Russian accounting guideline
to emphasize substance over form is contracticted?
Q-7B.2 Do governmental authorities
other than those collecting income taxes, use Russian accounting
numbers or other statistical indicators to measure firm performance?
Q-7B.3 Why is there (or has
there been) a neglect for revenue and expenses in Russian accounting?
Q-7B.4 How is the neglect
of Russian income statement damaging to understanding results
of operations?
Q-7B.5 What break down of
expenses appears in Russian income statements? How revealing is
that?
Q-7B.6 How have Russian economic
problems contributed to a distorted accounting system?
Q-7B.7 How has the Russian
accounting system contributed to Russia's economic problems?
Q-7B.8 Why are Russian firms
secretive about their accounting data?
Q- 7B.9 Discuss whether Russian
accounting is occasionally used to deceive rather than inform.
Q-7B.10 What problems will
continue to exist for some time even after Russia adopts international
accounting rules?
Q- 7C1.1How
does one deal with the inadequacy of Russian accounting system?
Q-7C1.2 Explain why the balance
sheet is distorted by the presence of office and sundry items
in inventory.
Q-7C1.3 Explain why the balance
sheet is distorted by the presence of plant and equipment no longer
used in production in fixed assets.
Q-7C1.4 What are the consequences
of having accumulated losses as part of assets on the balance
sheet.
Q-7C1.5 Is informational
content lost when small amounts of Russian current liabilities
are combined in four groups (credit, suppliers, taxes and other)?
Q-7C1.6 How useful is it
for a financial analyst to know gains and losses on securities
and on foreign currencies, even if they are small?
Q-7C2.1
List lines that may be combined in a Russian balance sheet.
Q-7C2.2 List items of Russian
balance sheet that should be expensed.
Q-7C2.3 List modification
needed to an existing Russian income statement.
Q- 7C2.4 Is it useful to
show beyond the fifth digit of a large number?
Q-7C3.1
List some of the items of information needed to carry a conversion
of Russian financial statements.
Q-7C4.1
How was inflation handled in Russian accounting during periods
of hyperinflation in the early 1990's?
Q-7C6.1
Does the conversion of Russian financial statements presented
in the case improve each of the following objectives and mitigates
limitations of accounting:
- relevance
- objectivity
- comparability
- clarity
- importance
- emphasis of content over form
- generality of purpose
- monetary expression
- oversimplification
- subjective estimation
- historically irrelevant valuation
Q-7C7.1
What does it imply if conversion of Russian accounting numbers
is necessary to obtain information from financial statements?
Q-7C7.2 Are there Russian
firms that report in both Russian and international format of
financial statements?
Q-7C7.3 Are there software
packages that make it possible to maintain accounting according
to several accounting rules?
| Previous: Readings |
|
Next: Exercises, Cases & Assignments |