Question 1

Accounting standards vary according to ownership types, in theory.

Accepted Answer

A)  centrally-planned economy 
B)  continental zone 
C)  accounting zone 
D)  transitional economy zone 
A)  centrally-planned economy 
B)  continental zone 
C)  accounting zone 
D)  transitional economy zone D

Question 2

Developed countries often enjoy from low inflation and thus tend to view inflation accounting with suspicion.

Accepted Answer

A) True 
 B)False  False

Question 3

Global Communication Inc. might adopt an advance pricing agreement to avoid the risk of an audit.

Accepted Answer

A) True 
 B)False  True

Question 4

An example of a country that is comprised by the continental accounting model is

Accepted Answer

A)  France. 
B)  Hungary. 
C)  North Korea. 
D)  Jamaica. 
A)  France. 
B)  Hungary. 
C)  North Korea. 
D)  Jamaica.

Question 5

The most important benefit of transfer pricing to a corporation is

Accepted Answer

A)  more revenue. 
B)  lower cost of materials. 
C)  tax avoidance. 
D)  less competition. 
A)  more revenue. 
B)  lower cost of materials. 
C)  tax avoidance. 
D)  less competition.

Question 6

A pharmaceutical company might open a subsidiary in Bermuda to receive a huge tax break.

Accepted Answer

A) True 
 B)False

Question 7

A textile company might open a factory in the Virgin Islands to

Accepted Answer

A)  get away from annoying people. 
B)  go scuba diving. 
C)  receive tax benefits. 
D)  find attractive employees. 
A)  get away from annoying people. 
B)  go scuba diving. 
C)  receive tax benefits. 
D)  find attractive employees.

Question 8

Countries that offer tax heavens (relatively low tax rates) are

Accepted Answer

A)  British Virgin Islands. 
B)  The Channel Islands. 
C)  Angola and the Netherlands Antilles. 
D)  all of the above 
A)  British Virgin Islands. 
B)  The Channel Islands. 
C)  Angola and the Netherlands Antilles. 
D)  all of the above

Question 9

Which of the following is a part of economic structure that influences how accounting issues are handled?

Accepted Answer

A)  pensions 
B)  retained earnings, dividends, depreciation 
C)  research and development (R&
D)  cost amortization 
D)  all of the above 
A)  pensions 
B)  retained earnings, dividends, depreciation 
C)  research and development (R&
D)  cost amortization 
D)  all of the above

Question 10

A major weakness under this method is the treatment of inventory and long-term debt.

Accepted Answer

A)  current/non-current method 
B)  monetary/non-monetary method 
C)  accounting method 
D)  transitional method 
A)  current/non-current method 
B)  monetary/non-monetary method 
C)  accounting method 
D)  transitional method

Question 11

Cultural dimensions at the national level, initially identified by Heckscher, that are particularly relevant to accounting development are "uncertainty avoidance" and "individualism".

Accepted Answer

A) True 
 B)False

Question 12

_________________ involve accounting-related reporting system, data management, and communication between various units under an intra-MNE structure.

Accepted Answer

A)  International accounting information systems 
B)  Management information systems 
C)  National auditing systems 
D)  Corporate mergers 
A)  International accounting information systems 
B)  Management information systems 
C)  National auditing systems 
D)  Corporate mergers

Question 13

__________________ refers to the pricing of goods and services that are transferred between members of an MNE network.

Accepted Answer

A)  Supply pricing 
B)  Competitive pricing 
C)  Transfer pricing 
D)  Global pricing 
A)  Supply pricing 
B)  Competitive pricing 
C)  Transfer pricing 
D)  Global pricing

Question 14

"Owner's equity" in state-owned enterprises actually reflects "state's equity" or "governmental equity."

Accepted Answer

A) True 
 B)False

Question 15

___________________ is the process of restating accounting data recorded in one currency into another currency for the purpose of aggregating data from different reporting entities.

Accepted Answer

A)  Conversion 
B)  Transporting 
C)  Translation 
D)  Emerging 
A)  Conversion 
B)  Transporting 
C)  Translation 
D)  Emerging

Question 16

A country's accounting system is shaped by institutions, societal culture, and internal relations with other countries.

Accepted Answer

A) True 
 B)False

Question 17

The taxation system theory states the importance of accounting systems being strongly influenced by state objectives.

Accepted Answer

A) True 
 B)False

Question 18

As inflation rates increase, the problems of historical cost accounting also increase.

Accepted Answer

A) True 
 B)False

Question 19

It is said that in _______________ nations, accounting is oriented toward the decision needs of investors and creditors.

Accepted Answer

A)  Anglo-Saxon 
B)  British-American 
C)  South American 
D)  Democratic governed 
A)  Anglo-Saxon 
B)  British-American 
C)  South American 
D)  Democratic governed

Question 20

Liberal-democratic system is often found in which of the following countries?

Accepted Answer

A)  Western Europe 
B)  North America 
C)  Japan and Australia 
D)  all of the above 
A)  Western Europe 
B)  North America 
C)  Japan and Australia 
D)  all of the above

Accounting standards vary according to ownership types, in theory.

Developed countries often enjoy from low inflation and thus tend to view inflation accounting with suspicion.

Global Communication Inc. might adopt an advance pricing agreement to avoid the risk of an audit.

An example of a country that is comprised by the continental accounting model is

The most important benefit of transfer pricing to a corporation is

A pharmaceutical company might open a subsidiary in Bermuda to receive a huge tax break.

A textile company might open a factory in the Virgin Islands to

Countries that offer tax heavens (relatively low tax rates) are

Which of the following is a part of economic structure that influences how accounting issues are handled?

A major weakness under this method is the treatment of inventory and long-term debt.

Cultural dimensions at the national level, initially identified by Heckscher, that are particularly relevant to accounting development are "uncertainty avoidance" and "individualism".

_________________ involve accounting-related reporting system, data management, and communication between various units under an intra-MNE structure.

__________________ refers to the pricing of goods and services that are transferred between members of an MNE network.

"Owner's equity" in state-owned enterprises actually reflects "state's equity" or "governmental equity."

___________________ is the process of restating accounting data recorded in one currency into another currency for the purpose of aggregating data from different reporting entities.

A country's accounting system is shaped by institutions, societal culture, and internal relations with other countries.

The taxation system theory states the importance of accounting systems being strongly influenced by state objectives.

As inflation rates increase, the problems of historical cost accounting also increase.

It is said that in _______________ nations, accounting is oriented toward the decision needs of investors and creditors.

Liberal-democratic system is often found in which of the following countries?

International Business in an Age of Globalization

International Trade Theory and Application

Foreign Direct Investment Theory and Application

The Multinational Enterprise

Country Competitiveness

The Cultural Environment

The Political and Legal Environment

International Economic Integration and Institutions

The International Monetary System and Financial Markets

International Entry Strategies

Mne Organization Structure and Design

Building and Managing Global Strategic Alliances Gsas

Managing Global Research and Development Rd

Financial Management for Global Operations

Global Marketing and Supply Chain

Global Human Resource Management

Internet and Global E-Commerce

Social Responsibility and Corruption in the Global Marketplace

International Entrepreneurship

Filters

Exam 15: International Accounting for Global Operations

Accounting standards vary according to ownership types, in theory.

Developed countries often enjoy from low inflation and thus tend to view inflation accounting with suspicion.

Global Communication Inc. might adopt an advance pricing agreement to avoid the risk of an audit.

An example of a country that is comprised by the continental accounting model is

The most important benefit of transfer pricing to a corporation is

A pharmaceutical company might open a subsidiary in Bermuda to receive a huge tax break.

A textile company might open a factory in the Virgin Islands to

Countries that offer tax heavens (relatively low tax rates) are

Which of the following is a part of economic structure that influences how accounting issues are handled?

A major weakness under this method is the treatment of inventory and long-term debt.

Cultural dimensions at the national level, initially identified by Heckscher, that are particularly relevant to accounting development are "uncertainty avoidance" and "individualism".

_________________ involve accounting-related reporting system, data management, and communication between various units under an intra-MNE structure.

__________________ refers to the pricing of goods and services that are transferred between members of an MNE network.

"Owner's equity" in state-owned enterprises actually reflects "state's equity" or "governmental equity."

___________________ is the process of restating accounting data recorded in one currency into another currency for the purpose of aggregating data from different reporting entities.

A country's accounting system is shaped by institutions, societal culture, and internal relations with other countries.

The taxation system theory states the importance of accounting systems being strongly influenced by state objectives.

As inflation rates increase, the problems of historical cost accounting also increase.

It is said that in _______________ nations, accounting is oriented toward the decision needs of investors and creditors.

Liberal-democratic system is often found in which of the following countries?

International Business in an Age of Globalization

International Trade Theory and Application

Foreign Direct Investment Theory and Application

The Multinational Enterprise

Country Competitiveness

The Cultural Environment

The Political and Legal Environment

International Economic Integration and Institutions

The International Monetary System and Financial Markets

International Entry Strategies

Mne Organization Structure and Design

Building and Managing Global Strategic Alliances Gsas

Managing Global Research and Development Rd

Financial Management for Global Operations

Global Marketing and Supply Chain

Global Human Resource Management

Internet and Global E-Commerce

Social Responsibility and Corruption in the Global Marketplace

International Entrepreneurship

Filters