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

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.

In which of the following countries is the use of the international financial reporting standards (IFRS) not mandatory?

Which of the following statements holds true for transnational investment?

What are the advantages of centralized depositories?

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?

When a subsidiary obtains funding through a _____ it allows both the subsidiary and the parent eliminate paying transaction costs to an outside entity such as a bank, which would charge fees to make the transaction.

The process of _____ budgeting helps a firm decide which major investment projects will be most economically advantageous for the firm by assessing each project's benefits, costs, and risks.

What facts must be considered by an organization when using centralized depositories?

Which of the following statements holds true for equity financing?

Which of the following statements holds true for hedging?

Consolidating financial statements of subsidiaries located in different countries poses problems because of the different currencies used in different countries.

Why do some firms choose a decentralized financial organization structure?

_____ refers to a method of foreign currency translation in which items in the subsidiaries' financial statements are translated at the current exchange rate into the currency of the parent corporation.

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

Some companies may gain greater efficiencies and stronger controls by making a move from the GAAP to the IFRS.

Which of the following statements holds true for "mudarabah," an investment partnership approved by the Sharia?

Adhering to GAAP as well as IFRS helps companies in creating globally shared service center for accounting, rather than having accounting departments in different regions.

The purpose of accounting is to communicate the organization's financial position to company managers, investors, banks, and the government.

Which of the following statements holds true for accounting standards?