Question 1

What group is primarily responsible for the creation of International Financial Reporting Standards (IFRS)?

Accepted Answer

A) Financial Accounting Standards Board (FAS
B)  
B) International Forum on Accountancy Development (IFA
D)  
C) International Federation of Accountants (IF
A)  
D) International Accounting Standards Board (IAS
B)  
A) Financial Accounting Standards Board (FAS
B)  
B) International Forum on Accountancy Development (IFA
D)  
C) International Federation of Accountants (IF
A)  
D) International Accounting Standards Board (IAS
B)

Question 2

Why would a company want its stock cross-listed on the stock exchanges of several countries?

Accepted Answer

A) To make financial reporting less burdensome for its accounting firm 
B) In order to use International Financial Reporting Standards 
C) To gain access to more financial resources than are available in its home country 
D) All of the above 
A) To make financial reporting less burdensome for its accounting firm 
B) In order to use International Financial Reporting Standards 
C) To gain access to more financial resources than are available in its home country 
D) All of the above

Question 3

What is the term used to describe the possibility that a foreign currency will decrease in US $ value over the life of an asset such as Accounts Receivable?

Accepted Answer

A) foreign exchange translation 
B) foreign exchange risk 
C) hedging 
D) foreign currency options 
A) foreign exchange translation 
B) foreign exchange risk 
C) hedging 
D) foreign currency options

Question 4

Which functional areas are included in the study of international accounting?

Accepted Answer

A) Financial reporting 
B) Accounting information systems 
C) Taxation 
D) All of the above 
A) Financial reporting 
B) Accounting information systems 
C) Taxation 
D) All of the above

Question 5

What countries are collectively known as "the triad"?

Accepted Answer

A) France,Spain and Italy 
B) Germany,Russia and China 
C) United States,Japan and members of the European Union 
D) United States,Canada and Mexico 
A) France,Spain and Italy 
B) Germany,Russia and China 
C) United States,Japan and members of the European Union 
D) United States,Canada and Mexico

Question 6

What does "multinationality" mean?

Accepted Answer

A) How internationally widespread a company's investment and business operations are 
B) The diversity of languages spoken at a company's headquarters 
C) The number of stock exchanges where a company's shares are listed 
D) None of the above 
A) How internationally widespread a company's investment and business operations are 
B) The diversity of languages spoken at a company's headquarters 
C) The number of stock exchanges where a company's shares are listed 
D) None of the above

Question 7

XYZ Corporation,with a division located in Germany,must translate its financial statements from euros to U.S.dollars. What is the major issue involved in translation?

Accepted Answer

A) Most accountants are not conversant in foreign currency exchange. 
B) U)S.GAAP may differ from German GAAP. 
C) The U.S.dollar has been steadily falling relative to the euro. 
D) The resulting balance sheet may not balance. 
A) Most accountants are not conversant in foreign currency exchange. 
B) U)S.GAAP may differ from German GAAP. 
C) The U.S.dollar has been steadily falling relative to the euro. 
D) The resulting balance sheet may not balance.

Question 8

When setting transfer prices among international subsidiaries,the corporation must:

Accepted Answer

A) make sure that the total tax is minimized. 
B) ensure that the transfer prices are acceptable to the taxing authorities in the countries involved. 
C) do whatever it takes to make taxes paid in the United States as low as possible. 
D) follow the transfer pricing policy used for domestic transfers. 
A) make sure that the total tax is minimized. 
B) ensure that the transfer prices are acceptable to the taxing authorities in the countries involved. 
C) do whatever it takes to make taxes paid in the United States as low as possible. 
D) follow the transfer pricing policy used for domestic transfers.

Question 9

OECD is an important supranational entity. What do the letters OECD stand for?

Accepted Answer

A) Organization of Electrical Companies Directorate 
B) Oil Exporting Countries and Developers 
C) Organization for Economic Cooperation and Development 
D) Oil Exporting Corporations and Divisions 
A) Organization of Electrical Companies Directorate 
B) Oil Exporting Countries and Developers 
C) Organization for Economic Cooperation and Development 
D) Oil Exporting Corporations and Divisions

Question 10

What term is used to describe combining the financial statements of all subsidiaries,both foreign and domestic,into the financial statements of the parent?

Accepted Answer

A) Convergence 
B) Hedging 
C) Consolidation 
D) Incorporation 
A) Convergence 
B) Hedging 
C) Consolidation 
D) Incorporation

Question 11

ABCO Corporation has a parts division in country A. Its assembly division is in country B,which has a higher tax rate than country A. To minimize the corporation's overall income tax,how should ABCO set its transfer prices between its parts and assembly divisions?

Accepted Answer

A) The parts division should sell parts to the assembly division at low prices. 
B) The parts division should sell parts to the assembly division at high prices. 
C) It doesn't matter what transfer price is used because the divisions are part of the same company. 
D) Transfer pricing has nothing to do with the total tax paid by the corporation. 
A) The parts division should sell parts to the assembly division at low prices. 
B) The parts division should sell parts to the assembly division at high prices. 
C) It doesn't matter what transfer price is used because the divisions are part of the same company. 
D) Transfer pricing has nothing to do with the total tax paid by the corporation.

Question 12

What percentage of world trade is represented by manufactured products?

Accepted Answer

A) 66.5% 
B) 22.5% 
C) 8)5% 
D) 75.5% 
A) 66.5% 
B) 22.5% 
C) 8)5% 
D) 75.5%

Question 13

The multinationality index (MNI)includes the following ratio:

Accepted Answer

A) foreign working capital to total working capital. 
B) foreign cash to total cash. 
C) foreign employment to total employment. 
D) foreign loans to total loans. 
A) foreign working capital to total working capital. 
B) foreign cash to total cash. 
C) foreign employment to total employment. 
D) foreign loans to total loans.

Question 14

Which of the following statements is true about international transfer pricing?

Accepted Answer

A) It is a violation of the Foreign Corrupt Practices Act. 
B) It is accomplished using guidelines set up by the FASB. 
C) It is used to minimize the amount of worldwide taxes. 
D) Most countries do not regulate it. 
A) It is a violation of the Foreign Corrupt Practices Act. 
B) It is accomplished using guidelines set up by the FASB. 
C) It is used to minimize the amount of worldwide taxes. 
D) Most countries do not regulate it.

Question 15

The process by which a domestic company sells its stock,already sold on its domestic exchange,on a foreign stock exchange is known as:

Accepted Answer

A) SEC registration 
B) Initial public offering 
C) Consolidation 
D) Cross-listing 
A) SEC registration 
B) Initial public offering 
C) Consolidation 
D) Cross-listing

Question 16

What is a key objective of a company's performance evaluation system?

Accepted Answer

A) To determine how much to pay executives in bonuses and other compensation 
B) To ensure that the domestic and foreign operations are achieving their objectives. 
C) To control foreign subsidiaries 
D) To assess the effect of foreign exchange rates on published financial statements 
A) To determine how much to pay executives in bonuses and other compensation 
B) To ensure that the domestic and foreign operations are achieving their objectives. 
C) To control foreign subsidiaries 
D) To assess the effect of foreign exchange rates on published financial statements

Question 17

In terms of multinational corporation international trade and investment,the United States,Japan,and the European Union are referred to together as:

Accepted Answer

A) the G8. 
B) the Commonwealth 
C) the triad. 
D) the OECD. 
A) the G8. 
B) the Commonwealth 
C) the triad. 
D) the OECD.

Question 18

Foreign companies whose stocks are listed on the New York Stock Exchange (NYSE)must report their income in terms of:

Accepted Answer

A) International Accounting Standards. 
B) the GAAP of their home country. 
C) the generally accepted accounting principles of the United States. 
D) All of the above. 
A) International Accounting Standards. 
B) the GAAP of their home country. 
C) the generally accepted accounting principles of the United States. 
D) All of the above.

Question 19

For a U.S.multinational corporation,consolidating the financial statements of foreign subsidiaries requires two steps. First,the foreign subsidiary's statements must be restated according to U.S.GAAP. The next step is to:

Accepted Answer

A) convert the account balances into U.S.dollars. 
B) determine the exchange rate gain or loss. 
C) calculate the translation adjustment. 
D) restate the income using international accounting standards. 
A) convert the account balances into U.S.dollars. 
B) determine the exchange rate gain or loss. 
C) calculate the translation adjustment. 
D) restate the income using international accounting standards.

Question 20

What is the advantage of foreign direct investment?

Accepted Answer

A) Retain advantage over competition 
B) Reducing transportation costs 
C) Creating a company tailored to a foreign market's unique characteristics 
D) All of the above 
A) Retain advantage over competition 
B) Reducing transportation costs 
C) Creating a company tailored to a foreign market's unique characteristics 
D) All of the above

What group is primarily responsible for the creation of International Financial Reporting Standards (IFRS)?

Why would a company want its stock cross-listed on the stock exchanges of several countries?

What is the term used to describe the possibility that a foreign currency will decrease in US $ value over the life of an asset such as Accounts Receivable?

Which functional areas are included in the study of international accounting?

What countries are collectively known as "the triad"?

What does "multinationality" mean?

XYZ Corporation,with a division located in Germany,must translate its financial statements from euros to U.S.dollars. What is the major issue involved in translation?

When setting transfer prices among international subsidiaries,the corporation must:

OECD is an important supranational entity. What do the letters OECD stand for?

What term is used to describe combining the financial statements of all subsidiaries,both foreign and domestic,into the financial statements of the parent?

ABCO Corporation has a parts division in country A. Its assembly division is in country B,which has a higher tax rate than country A. To minimize the corporation's overall income tax,how should ABCO set its transfer prices between its parts and assembly divisions?

What percentage of world trade is represented by manufactured products?

The multinationality index (MNI)includes the following ratio:

Which of the following statements is true about international transfer pricing?

The process by which a domestic company sells its stock,already sold on its domestic exchange,on a foreign stock exchange is known as:

What is a key objective of a company's performance evaluation system?

In terms of multinational corporation international trade and investment,the United States,Japan,and the European Union are referred to together as:

Foreign companies whose stocks are listed on the New York Stock Exchange (NYSE)must report their income in terms of:

For a U.S.multinational corporation,consolidating the financial statements of foreign subsidiaries requires two steps. First,the foreign subsidiary's statements must be restated according to U.S.GAAP. The next step is to:

What is the advantage of foreign direct investment?

Worldwide Accounting Diversity

International Convergence of Financial Reporting

International Financial Reporting Standards: Part I

International Financial Reporting Standards: Part II

Comparative Accounting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Additional Financial Reporting Issues

Analysis of Foreign Financial Statements

International Taxation

International Transfer Pricing

Strategic Accounting Issues in Multinational Corporations

Comparative International Auditing and Corporate Governance

International Corporate Social Reporting

Filters

Exam 1: Introduction to International Accounting

What group is primarily responsible for the creation of International Financial Reporting Standards (IFRS)?

Why would a company want its stock cross-listed on the stock exchanges of several countries?

What is the term used to describe the possibility that a foreign currency will decrease in US $ value over the life of an asset such as Accounts Receivable?

Which functional areas are included in the study of international accounting?

What countries are collectively known as "the triad"?

What does "multinationality" mean?

XYZ Corporation,with a division located in Germany,must translate its financial statements from euros to U.S.dollars. What is the major issue involved in translation?

When setting transfer prices among international subsidiaries,the corporation must:

OECD is an important supranational entity. What do the letters OECD stand for?

What term is used to describe combining the financial statements of all subsidiaries,both foreign and domestic,into the financial statements of the parent?

ABCO Corporation has a parts division in country A. Its assembly division is in country B,which has a higher tax rate than country A. To minimize the corporation's overall income tax,how should ABCO set its transfer prices between its parts and assembly divisions?

What percentage of world trade is represented by manufactured products?

The multinationality index (MNI)includes the following ratio:

Which of the following statements is true about international transfer pricing?

The process by which a domestic company sells its stock,already sold on its domestic exchange,on a foreign stock exchange is known as:

What is a key objective of a company's performance evaluation system?

In terms of multinational corporation international trade and investment,the United States,Japan,and the European Union are referred to together as:

Foreign companies whose stocks are listed on the New York Stock Exchange (NYSE)must report their income in terms of:

For a U.S.multinational corporation,consolidating the financial statements of foreign subsidiaries requires two steps. First,the foreign subsidiary's statements must be restated according to U.S.GAAP. The next step is to:

What is the advantage of foreign direct investment?

Worldwide Accounting Diversity

International Convergence of Financial Reporting

International Financial Reporting Standards: Part I

International Financial Reporting Standards: Part II

Comparative Accounting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Additional Financial Reporting Issues

Analysis of Foreign Financial Statements

International Taxation

International Transfer Pricing

Strategic Accounting Issues in Multinational Corporations

Comparative International Auditing and Corporate Governance

International Corporate Social Reporting

Filters