Exam 15: Accounting and Taxation in Global Business

Which of the following external users would require financial statement information, specifically information concerning ability to meet financial obligations?

The ______ refers to the Statement showing the company's inflows and outflows of cash.

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

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

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

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

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.

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?

Financial ratios are helpful in equalizing companies of different sizes for comparison of financial performance.

In the United States, external audits are usually conducted by independent Certified Public Accountants (CPAs). However, external audits can also be done by the company's internal accountants.

Of the following, which is NOT true about international financial reporting standards?

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 international business. It realizes there are sometimes different accounting guidelines that need to be followed when dealing on an international level. In essence, there are differences between U. S. and international generally accepted accounting principles. Which one of the following is not a factor that would influence the development of accounting and financial reporting?

_______ refers to the component of the accounting information system that provides financial information needed by external users such as investors and lenders.

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