Question 1

The primary external users of accounting information are governmental units, lenders, vendors, credit-rating agencies, stockholders, customers, and employees.

Accepted Answer

A) True 
 B)False

Question 2

Given the fact that lenders make money in both directions, both positive and negative trends in financial performance are good news for lenders.

Accepted Answer

A) True 
 B)False

Question 3

A(n)_____ answers the question: What is the firm's financial position at a designated point in time?

Accepted Answer

A) income statement 
B) balance sheet 
C) statement of retained earnings 
D) statement of cash flows 
E) statement of net value 
A) income statement 
B) balance sheet 
C) statement of retained earnings 
D) statement of cash flows 
E) statement of net value

Question 4

Which of the following statements is NOT true about corporate income tax rates and economic activity?

Accepted Answer

A) The income tax is the primary sources of revenues for national governments around the world. 
B) Before the Great Depression, state and local government expenditures in the U.S. were much lower than federal expenditures. 
C) When state corporate income tax rates are added to federal rates, Japan has the highest combined corporate income tax rate among OECD countries. 
D) The great majority of U.S. government expenditures are on nondefense items such as health, economic support, and education. 
E) From 2005-2008, the average gross savings rate of OECD countries increased. 
A) The income tax is the primary sources of revenues for national governments around the world. 
B) Before the Great Depression, state and local government expenditures in the U.S. were much lower than federal expenditures. 
C) When state corporate income tax rates are added to federal rates, Japan has the highest combined corporate income tax rate among OECD countries. 
D) The great majority of U.S. government expenditures are on nondefense items such as health, economic support, and education. 
E) From 2005-2008, the average gross savings rate of OECD countries increased.

Question 5

The highest corporate income taxes can be found in the United States and Japan.

Accepted Answer

A) True 
 B)False

Question 6

Of the following, which is the LOWEST level of authoritative accounting literature?

Accepted Answer

A) Accounting textbooks 
B) AICPA Accounting Interpretations 
C) AICPA Issues Papers 
D) Industry accounting practices 
E) Interpretations issues by the FASB 
A) Accounting textbooks 
B) AICPA Accounting Interpretations 
C) AICPA Issues Papers 
D) Industry accounting practices 
E) Interpretations issues by the FASB

Question 7

Because differences in culture and business environments leads to differences in the GAAP of countires, in 1970 an international GAAP was developed and is used by all countries today.

Accepted Answer

A) True 
 B)False

Question 8

The first step of an audit typically is to _____.

Accepted Answer

A) communicate audit results 
B) arrive at audit opinion 
C) plan the audit 
D) obtain and evaluate evidence 
E) brainstorm ideas for the audit 
A) communicate audit results 
B) arrive at audit opinion 
C) plan the audit 
D) obtain and evaluate evidence 
E) brainstorm ideas for the audit

Question 9

A main goal of the International Accounting Standards Board is to develop, in the public interest, a single set of high quality, understandable, and enforceable global accounting standards that require transparent and comparable information in general purpose financial statements.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statements is NOT true of the IASB?

Accepted Answer

A) The IASB's purpose is to create a single set of high quality, understandable, and enforceable global accounting standards. 
B) The publication of a Standard, Exposure Draft, or final SIC Interpretation requires approval by nine of the Board Members. 
C) The IASB is a set of international accounting standards that require transparent and comparable information in general purpose financial statements. 
D) The IASB represents accounting and financial organizations from more than 100 countries 
E) The IASB is independent and privately funded. 
A) The IASB's purpose is to create a single set of high quality, understandable, and enforceable global accounting standards. 
B) The publication of a Standard, Exposure Draft, or final SIC Interpretation requires approval by nine of the Board Members. 
C) The IASB is a set of international accounting standards that require transparent and comparable information in general purpose financial statements. 
D) The IASB represents accounting and financial organizations from more than 100 countries 
E) The IASB is independent and privately funded.

Question 11

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 conducts extensive internal audits to insure the reliability and accuracy of its accounting records.  Which one of the following is least likely a step in its internal auditing process?

Accepted Answer

A)  Communicate the results 
B) Obtain and evaluate evidence 
C) Arrive at an audit opinion 
D) Plan the audit 
E) Publicize its results in the financial news 
A)  Communicate the results 
B) Obtain and evaluate evidence 
C) Arrive at an audit opinion 
D) Plan the audit 
E) Publicize its results in the financial news

Question 12

All of the following are the highest level of the primary sources of authoritative accounting literature, EXCEPT:

Accepted Answer

A) AICPA Accounting Interpretations 
B) Non-superseded sections of the Accounting Research Bullentins issued by the Committee on Accounting Procedures 
C) Statements of Financial Accounting Standards issued by FASB 
D) Interpretations issued by the FASB 
E) Statements and Interpretations of the Governmental Accounting Standards Board 
A) AICPA Accounting Interpretations 
B) Non-superseded sections of the Accounting Research Bullentins issued by the Committee on Accounting Procedures 
C) Statements of Financial Accounting Standards issued by FASB 
D) Interpretations issued by the FASB 
E) Statements and Interpretations of the Governmental Accounting Standards Board

Question 13

Financial accounting is the component of the AIS that provides financial information needed by _______ users, such as investors and lenders.

Accepted Answer

The answer of Financial accounting is the component of the...

Question 14

_____ provide the procedures for dealing with specific accounting matters.

Accepted Answer

A) GIIP 
B) ASEAN 
C) CPAP 
D) SFAS 
E) GAAP 
A) GIIP 
B) ASEAN 
C) CPAP 
D) SFAS 
E) GAAP

Question 15

Neither U.S. GAAP nor IFRS permit use of the LIFO method.

Accepted Answer

A) True 
 B)False

Question 16

Which would NOT typically be an objective of a financial statement audit?

Accepted Answer

A) Ensuring the existence of assets and liabilities and occurrence of income and expenses 
B) Evaluating the economy and efficiency with which scarce resources are used 
C) Verifying that all financial statement items are properly presented 
D) Ensuring that the auditee owns the assets and is obligated to the extent of liabilities shown 
E) Verifying the proper valuation of assets, liabilities, income, and expenses 
A) Ensuring the existence of assets and liabilities and occurrence of income and expenses 
B) Evaluating the economy and efficiency with which scarce resources are used 
C) Verifying that all financial statement items are properly presented 
D) Ensuring that the auditee owns the assets and is obligated to the extent of liabilities shown 
E) Verifying the proper valuation of assets, liabilities, income, and expenses

Question 17

_____ refers to an independent, privately funded accounting standard-setter based in London, U.K., that issues International Financial Reporting Standards.

Accepted Answer

A) GAAP 
B) SFAS 
C) IASB 
D) IFRS 
E) PAWS 
A) GAAP 
B) SFAS 
C) IASB 
D) IFRS 
E) PAWS

Question 18

Conducting business in a tax haven means that there are no taxes whatsoever.

Accepted Answer

A) True 
 B)False

Question 19

In this GAAP inventory costing method, a company keeps track of the cost of individual inventory items.

Accepted Answer

A) Specific identification 
B) FIFO 
C) LIFO 
D) Weighted average 
E) MACRS 
A) Specific identification 
B) FIFO 
C) LIFO 
D) Weighted average 
E) MACRS

Question 20

The _______ Accounting Standards Board is an independent, privately funded accounting standard-setter based in London.

Accepted Answer

The answer of The _______ Accounting Standards Board is an...

The primary external users of accounting information are governmental units, lenders, vendors, credit-rating agencies, stockholders, customers, and employees.

Given the fact that lenders make money in both directions, both positive and negative trends in financial performance are good news for lenders.

A(n)_____ answers the question: What is the firm's financial position at a designated point in time?

Which of the following statements is NOT true about corporate income tax rates and economic activity?

The highest corporate income taxes can be found in the United States and Japan.

Of the following, which is the LOWEST level of authoritative accounting literature?

Because differences in culture and business environments leads to differences in the GAAP of countires, in 1970 an international GAAP was developed and is used by all countries today.

The first step of an audit typically is to _____.

A main goal of the International Accounting Standards Board is to develop, in the public interest, a single set of high quality, understandable, and enforceable global accounting standards that require transparent and comparable information in general purpose financial statements.

Which of the following statements is NOT true of the IASB?

All of the following are the highest level of the primary sources of authoritative accounting literature, EXCEPT:

Financial accounting is the component of the AIS that provides financial information needed by _______ users, such as investors and lenders.

_____ provide the procedures for dealing with specific accounting matters.

Neither U.S. GAAP nor IFRS permit use of the LIFO method.

Which would NOT typically be an objective of a financial statement audit?

_____ refers to an independent, privately funded accounting standard-setter based in London, U.K., that issues International Financial Reporting Standards.

Conducting business in a tax haven means that there are no taxes whatsoever.

In this GAAP inventory costing method, a company keeps track of the cost of individual inventory items.

The _______ Accounting Standards Board is an independent, privately funded accounting standard-setter based in London.

The Rise of Globalization

The Evolution of International Business

Regional Economic Integration

The International Flow of Funds and Exchange Rates

The Cultural Environment of Global Business

The Legal, Economic and Political Environment of Global Business

Corruption and Ethics in Global Business

Entry Strategies in Global Business

Control of Global Business

The Organization of Global Business

Global Human Resource Management

Global Marketing

Global Operations and Supply-Chain Management

Global Financial Management

Filters

Exam 15: Global Accounting and Taxation

The primary external users of accounting information are governmental units, lenders, vendors, credit-rating agencies, stockholders, customers, and employees.

Given the fact that lenders make money in both directions, both positive and negative trends in financial performance are good news for lenders.

A(n)_____ answers the question: What is the firm's financial position at a designated point in time?

Which of the following statements is NOT true about corporate income tax rates and economic activity?

The highest corporate income taxes can be found in the United States and Japan.

Of the following, which is the LOWEST level of authoritative accounting literature?

Because differences in culture and business environments leads to differences in the GAAP of countires, in 1970 an international GAAP was developed and is used by all countries today.

The first step of an audit typically is to _____.

A main goal of the International Accounting Standards Board is to develop, in the public interest, a single set of high quality, understandable, and enforceable global accounting standards that require transparent and comparable information in general purpose financial statements.

Which of the following statements is NOT true of the IASB?

All of the following are the highest level of the primary sources of authoritative accounting literature, EXCEPT:

Financial accounting is the component of the AIS that provides financial information needed by _______ users, such as investors and lenders.

_____ provide the procedures for dealing with specific accounting matters.

Neither U.S. GAAP nor IFRS permit use of the LIFO method.

Which would NOT typically be an objective of a financial statement audit?

_____ refers to an independent, privately funded accounting standard-setter based in London, U.K., that issues International Financial Reporting Standards.

Conducting business in a tax haven means that there are no taxes whatsoever.

In this GAAP inventory costing method, a company keeps track of the cost of individual inventory items.

The _______ Accounting Standards Board is an independent, privately funded accounting standard-setter based in London.

The Rise of Globalization

The Evolution of International Business

Regional Economic Integration

The International Flow of Funds and Exchange Rates

The Cultural Environment of Global Business

The Legal, Economic and Political Environment of Global Business

Corruption and Ethics in Global Business

Entry Strategies in Global Business

Control of Global Business

The Organization of Global Business

Global Human Resource Management

Global Marketing

Global Operations and Supply-Chain Management

Global Financial Management

Filters