Question 1

Those who rely on financial statements are very concerned about the ____ of the reports they receive.

Accepted Answer

A)  latitude 
B)  readability 
C)  validity 
D)  format 
E)  length 
A)  latitude 
B)  readability 
C)  validity 
D)  format 
E)  length

Question 2

_______ refers to the principles by which financial statements are prepared.

Accepted Answer

Generally accepted a

Question 3

_____ 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 4

_______ is the relationship of a number on the financial statements to another number.

Accepted Answer

The answer of _______ is the relationship of a number...

Question 5

_____ 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 6

_______ is part of the highest level of the United States' generally accepted accounting principles (GAAP), issued by the Financial Accounting Standards Board (FASB).

Accepted Answer

Statements of Financial Accoun

Question 7

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.
-Which one of the following would the Williams Company expect to establish a set of international accounting standards stating how particular types of transactions and other events should be reported in financial statements?

Accepted Answer

A)  GAAP 
B)  AIS 
C)  SFAS 
D)  IFRS 
E)  NAACP 
A)  GAAP 
B)  AIS 
C)  SFAS 
D)  IFRS 
E)  NAACP

Question 8

A rule of thumb for a "good" current ratio is that companies should have a current ratio between _____ and _____.

Accepted Answer

A)  1; 2 
B)  1; 5 
C)  5; 10 
D)  50; 75 
E)  75; 100 
A)  1; 2 
B)  1; 5 
C)  5; 10 
D)  50; 75 
E)  75; 100

Question 9

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

Accepted Answer

A)  taxes are avoided altogether 
B)  taxes are handled under international law 
C)  transfer pricing affects taxes owed and company profits 
D)  transfer pricing does not affect taxes owed but does affect profits 
E)  transfer pricing does affect taxes owed but does not affect company profits 
A)  taxes are avoided altogether 
B)  taxes are handled under international law 
C)  transfer pricing affects taxes owed and company profits 
D)  transfer pricing does not affect taxes owed but does affect profits 
E)  transfer pricing does affect taxes owed but does not affect company profits

Question 10

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)  Since 1939, state and local government expenditures have been much lower than federal expenditures. 
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)  Since 1939, state and local government expenditures have been much lower than federal expenditures. 
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 11

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.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

International Accoun

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A)  Losses 
B)  Net Profit 
C)  Total Liabilities 
D)  Total Assets 
E)  Cash Flows 
A)  Losses 
B)  Net Profit 
C)  Total Liabilities 
D)  Total Assets 
E)  Cash Flows

Question 15

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

Accepted Answer

Yes, International Financial Reporting S

Question 16

Briefly explain how financial statement analysis can be used to evaluate a company's financial situation.

Accepted Answer

Financial statement analysis is a crucia

Question 17

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 18

A statement that shows the beginning balance for retained earnings, additions and reductions to retained earnings, and the ending balance of retained earnings is known as a(n)_____.

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 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Those who rely on financial statements are very concerned about the ____ of the reports they receive.

_______ refers to the principles by which financial statements are prepared.

_____ provide the procedures for dealing with specific accounting matters.

_______ is the relationship of a number on the financial statements to another number.

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

_______ is part of the highest level of the United States' generally accepted accounting principles (GAAP), issued by the Financial Accounting Standards Board (FASB).

A rule of thumb for a "good" current ratio is that companies should have a current ratio between _ and _.

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

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

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.

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

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

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

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

Briefly explain how financial statement analysis can be used to evaluate a company's financial situation.

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

A statement that shows the beginning balance for retained earnings, additions and reductions to retained earnings, and the ending balance of retained earnings is known as a(n)_____.

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

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

The Rise of Globalization

The Evolution of International Business

Regional Economic Integration

The International Flow of Funds and Exchange Rates

The Cultural Environment

The Legal 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: Accounting and Taxation in Global Business

Those who rely on financial statements are very concerned about the ____ of the reports they receive.

_______ refers to the principles by which financial statements are prepared.

_____ provide the procedures for dealing with specific accounting matters.

_______ is the relationship of a number on the financial statements to another number.

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

_______ is part of the highest level of the United States' generally accepted accounting principles (GAAP), issued by the Financial Accounting Standards Board (FASB).

A rule of thumb for a "good" current ratio is that companies should have a current ratio between _____ and _____.

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

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

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.

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

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

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

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

Briefly explain how financial statement analysis can be used to evaluate a company's financial situation.

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

A statement that shows the beginning balance for retained earnings, additions and reductions to retained earnings, and the ending balance of retained earnings is known as a(n)_____.

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

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

The Rise of Globalization

The Evolution of International Business

Regional Economic Integration

The International Flow of Funds and Exchange Rates

The Cultural Environment

The Legal 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

A rule of thumb for a "good" current ratio is that companies should have a current ratio between _ and _.

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