Exam 15: Understanding the Roles of Finance and Accounting in Global Competitive Advantage

What repercussions did the US CFOs anticipate when the Chinese government decided to allow the Yuan to float more freely in relation to other international currencies in 2010?

The advantage of raising money through debt financing is that company management doesn't give up any ownership of the firm.

What are the advantages of a centralized structure in an organization?

One alternative investment strategy approved by the Sharia is _____ that allows profit and loss sharing.

Most of the developed nations require consolidated statements so that losses can't be hidden under an unconsolidated subsidiary.

Which of the following statements holds true for transnational investment?

Explain how Brazilian government policies have boosted foreign investment and innovation.

An interim step toward the United States adopting IFRS would be to permit US firms that operate globally to file only under IFRS, rather than under both GAAP and IFRS, thereby reducing their financial-statement preparation costs.

The _____ is the major entity proposing international standards of accounting and was formerly known as the International Accounting Standards Committee (IASC).

Which of the following statements holds true for accounting standards?

Which of the following statements holds true for a decentralized financial organization structure?

Which of the following statements holds true for a forward contract?

Joan wants to buy a new loom for her weaving business. She applies to a bank for a loan of $50,000. It is a long-term loan that she intends to pay in five years time at a fixed interest rate. This is an example of:

The internal forward rate is a company-generated forecast of future spot-exchange rates.

Subsidiaries purchase assets at different times throughout the year and therefore the balance sheet of a multinational firm may not balance if the current-rate method is used.

The downsides of a(n) _____ financial organization structure are higher costs (due to having to hire more employees), some unavoidable duplication of effort, and a diminishment of control.

Which of the following statements holds true for fronting loan?

In the United States and Great Britain, companies tend to rely more on banks for funding than on individual investors.

Why do some firms choose a decentralized financial organization structure?

_____ refers to the company-generated forecast of future spot exchange rates.