Exam 15: Global Accounting and Taxation

Complete the following equation: Debt Ratio = __ ? __ / Total Assets.

Internal audits are also called _____ audits.

_______ accounting refers to the component of the accounting information system that provides the financial information needed internally by business managers for efficient and effective decision-making.

The ______ is a financial statement that answers the question: What is the firm's financial position at a designated point in time.

An evaluation of a company's financial statements in order to identify significant trends or relationships among the items is called a(n)_____ analysis.

Scenario - Brininger Enterprises Rapid City, South Dakota has been home to Brininger Enterprises since 1984.  This company is recognized around the world for its superior cutlery and currently ranks as number three within the industry.  In 2011, Brininger Enterprises recorded gross sales of over sixteen million dollars.  From its gross sales, the company claimed net profits of four million dollars. Brininger Enterprises is quite proud of its performance.  It realizes the company's financial records truly show this organization is doing something right. Brininger Enterprises maintains accurate and thorough accounting records.  Which piece of the company's accounting records would be needed to identify what cash monies were received and what cash was paid out by the company?  

Pressures for the IASB to harmonize its accounting standards is coming from cross-border mergers and acquisitions and rapid growth in international capital markets.

Explain the different objectives of an external audit and an internal audit.

What are retained earnings?

On a balance sheet for a corporation, the term owners' equity is replaced by the term ________ equity.

In the United States, an external auditor's opinion on a publicly traded company's financial statements is included in the annual report that the company files with the SEC.

A statement that lists the balances of the asset, liability, and owners' equity accounts of a business on a specific date is known as a(n)_____.

In the United States, an external audit must be conducted by a(n)_______.

Of the following statements about financial ratios, which is NOT true?

When members of a corporate family are located in different countries, _________.

The current ratio is calculated as current assets divided by current ________.

Scenario - The Williams Company Based in South Dakota, USA, the Williams Company has been in operation since 1967.  It has five branches located in China, Europe, South America, Mexico, and Canada.  Its exquisite product line of fine custom-made jewelry is highly desired throughout the world.  This company has maintained a very healthy balance sheet. The Williams Company is known within the industry for integrity and fair business practices.  This company maintains an accounting system that is open for any stakeholder to view.  It prides itself on being honest and trustworthy.  The company feels it is this honesty in business practice that has led it to be a billion dollar organization. If the company's stakeholders requested to be shown a financial statement that summarized the revenues earned and the expenses incurred by the Williams Company for a given period of time, which one of the following statements would they most likely be requesting?    

The relationship of a number on the financial statements to another number is called a _____.

Normally a lower current ratio indicates a better financial position, for it implies that that a company has adequate liquidity to carry out business operations.

Are International Financial Reporting Standards important to global business operations? Explain.