Question 1

Which term refers to the combination of external and internal mechanisms implemented to safeguard the assets of a company and protect shareholders' rights?

Accepted Answer

A)  consolidation 
B)  transfer pricing 
C)  balanced scorecard 
D)  corporate governance 
A)  consolidation 
B)  transfer pricing 
C)  balanced scorecard 
D)  corporate governance

Question 2

Parmalat engaged in financial statement fraud in part to divert funds to family-owned businesses.

Accepted Answer

A) True 
 B)False

Question 3

Compare the two major approaches used to translate foreign currency financial statements,and explain how translation gains and losses are reported under these two approaches.

Accepted Answer

Statement No.52 allows companies to use

Question 4

Financial statements typically include ________.

Accepted Answer

A)  accompanying footnotes, a balance sheet, and a cash-flow statement 
B)  translations into the languages of every country where the company lists shares 
C)  different currency results to reflect the different countries where the company has investments or generates revenues 
D)  different reports detailing the differences in generally accepted accounting principles used by the company in different countries 
A)  accompanying footnotes, a balance sheet, and a cash-flow statement 
B)  translations into the languages of every country where the company lists shares 
C)  different currency results to reflect the different countries where the company has investments or generates revenues 
D)  different reports detailing the differences in generally accepted accounting principles used by the company in different countries

Question 5

The balanced scorecard approach is a preferred method for measuring performance among U.S. firms,but the EU does not allow its usage.

Accepted Answer

A) True 
 B)False

Question 6

Transfer prices are ________.

Accepted Answer

A)  always based on production costs 
B)  the prices on goods transferred from one country to another 
C)  regulated by the United Nations so as to avoid manipulation 
D)  often used to minimize taxation 
A)  always based on production costs 
B)  the prices on goods transferred from one country to another 
C)  regulated by the United Nations so as to avoid manipulation 
D)  often used to minimize taxation

Question 7

Which term refers to how companies value assets such as inventory?

Accepted Answer

A)  measurement 
B)  conservatism 
C)  disclosure 
D)  optimism 
A)  measurement 
B)  conservatism 
C)  disclosure 
D)  optimism

Question 8

Under the current-rate method of translation,any gain or loss is known as a(n)________.

Accepted Answer

A)  liability 
B)  foreign exchange 
C)  annual net income 
D)  accumulated translation adjustment 
A)  liability 
B)  foreign exchange 
C)  annual net income 
D)  accumulated translation adjustment

Question 9

The Netherlands is an example of a country that is micro-based from an accounting perspective,as opposed to macro-uniform based.

Accepted Answer

A) True 
 B)False

Question 10

As a Japanese MNE,Sony is more likely to use ________ to evaluate performance of its foreign operations.

Accepted Answer

A)  quality targets 
B)  market share 
C)  ROI 
D)  sales 
A)  quality targets 
B)  market share 
C)  ROI 
D)  sales

Question 11

Differences in culture,geography,and financial methods make it complicated for MNEs to identify cause-and-effect performance measures.

Accepted Answer

A) True 
 B)False

Question 12

Using the same exchange rate to set the budget and monitor results ________.

Accepted Answer

A)  allows management to focus on operating variances instead of exchange-rate variances 
B)  enables management to focus on both operating and exchange-rate variances 
C)  is an illegal reporting method according to the FASB 
D)  is the only method that can be used in Europe 
A)  allows management to focus on operating variances instead of exchange-rate variances 
B)  enables management to focus on both operating and exchange-rate variances 
C)  is an illegal reporting method according to the FASB 
D)  is the only method that can be used in Europe

Question 13

How do cultural values such as optimism,conservatism,transparency,and secrecy affect country differences in accounting systems?

Accepted Answer

A major source of influence on accountin

Question 14

Germanic countries tend to be more transparent than the United States and the United Kingdom in terms of financial reporting due to their reliance on bank financing.

Accepted Answer

A) True 
 B)False

Question 15

The most common approach to translate budgets and compare a budget with actual performance uses the ________.

Accepted Answer

A)  spot rate 
B)  forecast rate 
C)  historical exchange rate 
D)  temporal exchange rate 
A)  spot rate 
B)  forecast rate 
C)  historical exchange rate 
D)  temporal exchange rate

Question 16

The financial reports and information provided by businesses is primarily used by all of the following EXCEPT ________.

Accepted Answer

A)  educators 
B)  investors 
C)  creditors 
D)  lenders 
A)  educators 
B)  investors 
C)  creditors 
D)  lenders

Question 17

According to U.S. GAAP,companies recognize transaction gains and losses in the income statement.

Accepted Answer

A) True 
 B)False

Question 18

What is the LEAST likely reason that MNEs set arbitrary transfer prices?

Accepted Answer

A)  take advantage of tax differences between countries 
B)  achieve economies of scale on a global level 
C)  circumvent national controls 
D)  manipulate profits 
A)  take advantage of tax differences between countries 
B)  achieve economies of scale on a global level 
C)  circumvent national controls 
D)  manipulate profits

Question 19

The global integration of capital markets is a major force leading to the convergence of accounting standards.

Accepted Answer

A) True 
 B)False

Question 20

What are the four main ways that financial statements differ from country to country? What role has the IASB played in establishing global accounting standards?

Accepted Answer

Differences in language,currency,stateme

Which term refers to the combination of external and internal mechanisms implemented to safeguard the assets of a company and protect shareholders' rights?

Parmalat engaged in financial statement fraud in part to divert funds to family-owned businesses.

Compare the two major approaches used to translate foreign currency financial statements,and explain how translation gains and losses are reported under these two approaches.

Financial statements typically include ________.

The balanced scorecard approach is a preferred method for measuring performance among U.S. firms,but the EU does not allow its usage.

Transfer prices are ________.

Which term refers to how companies value assets such as inventory?

Under the current-rate method of translation,any gain or loss is known as a(n)________.

The Netherlands is an example of a country that is micro-based from an accounting perspective,as opposed to macro-uniform based.

As a Japanese MNE,Sony is more likely to use ________ to evaluate performance of its foreign operations.

Differences in culture,geography,and financial methods make it complicated for MNEs to identify cause-and-effect performance measures.

Using the same exchange rate to set the budget and monitor results ________.

How do cultural values such as optimism,conservatism,transparency,and secrecy affect country differences in accounting systems?

Germanic countries tend to be more transparent than the United States and the United Kingdom in terms of financial reporting due to their reliance on bank financing.

The most common approach to translate budgets and compare a budget with actual performance uses the ________.

The financial reports and information provided by businesses is primarily used by all of the following EXCEPT ________.

According to U.S. GAAP,companies recognize transaction gains and losses in the income statement.

What is the LEAST likely reason that MNEs set arbitrary transfer prices?

The global integration of capital markets is a major force leading to the convergence of accounting standards.

What are the four main ways that financial statements differ from country to country? What role has the IASB played in establishing global accounting standards?

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

Globalization and Society

International Trade and Factor Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply Chain Management

The Multinational Finance Function

International Human Resources

Filters

Exam 18: International Accounting Issues

Which term refers to the combination of external and internal mechanisms implemented to safeguard the assets of a company and protect shareholders' rights?

Parmalat engaged in financial statement fraud in part to divert funds to family-owned businesses.

Compare the two major approaches used to translate foreign currency financial statements,and explain how translation gains and losses are reported under these two approaches.

Financial statements typically include ________.

The balanced scorecard approach is a preferred method for measuring performance among U.S. firms,but the EU does not allow its usage.

Transfer prices are ________.

Which term refers to how companies value assets such as inventory?

Under the current-rate method of translation,any gain or loss is known as a(n)________.

The Netherlands is an example of a country that is micro-based from an accounting perspective,as opposed to macro-uniform based.

As a Japanese MNE,Sony is more likely to use ________ to evaluate performance of its foreign operations.

Differences in culture,geography,and financial methods make it complicated for MNEs to identify cause-and-effect performance measures.

Using the same exchange rate to set the budget and monitor results ________.

How do cultural values such as optimism,conservatism,transparency,and secrecy affect country differences in accounting systems?

Germanic countries tend to be more transparent than the United States and the United Kingdom in terms of financial reporting due to their reliance on bank financing.

The most common approach to translate budgets and compare a budget with actual performance uses the ________.

The financial reports and information provided by businesses is primarily used by all of the following EXCEPT ________.

According to U.S. GAAP,companies recognize transaction gains and losses in the income statement.

What is the LEAST likely reason that MNEs set arbitrary transfer prices?

The global integration of capital markets is a major force leading to the convergence of accounting standards.

What are the four main ways that financial statements differ from country to country? What role has the IASB played in establishing global accounting standards?

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

Globalization and Society

International Trade and Factor Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply Chain Management

The Multinational Finance Function

International Human Resources

Filters