1.How does harmonization differ from convergence?

a. The ultimate goal of both harmonization and convergence is to achieve international comparability in financial reporting.

b. Harmonization refers to the reduction of alternative accounting practices in different countries.

c.Convergence refers to the process of developing a set of high-quality financial reporting standards for use internationally.

d.All answers are correct.

2.Which of the following statements is true about the comparability of the financial statements of the United States and the United Kingdom?

a. The financial statements of companies in the United States and the United Kingdom are comparable as they are prepared after adjusting inflation, which is a critical factor affecting accounting practice.

b.The accounting practices of both countries are oriented toward the decision needs of a large number of investors and creditors.

c.The basic principle followed by both countries in preparing financial statements in government economics and government tax and legal framework

d.The result of Latin American colonialism is a large number of countries with the United Kingdom's influence on their accounting practices.