Question 1

Germanic and Japanese companies tend to be more optimistic than U.S.and U.K.companies.

Accepted Answer

A) True 
 B)False

Question 2

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 3

How do exchange rates affect budgets used to evaluate performance in MNEs?

Accepted Answer

The major challenge is currency.Companie

Question 4

Which of the following statements is most likely true about secrecy and transparency in accounting?

Accepted Answer

A)  Japanese firms are usually as transparent as U.S. firms. 
B)  German companies tend to be less transparent than British companies. 
C)  Secrecy and transparency refer to the degree of caution companies display in valuing assets. 
D)  Companies that list on stock exchanges are highly transparent because of stockholder audits. 
A)  Japanese firms are usually as transparent as U.S. firms. 
B)  German companies tend to be less transparent than British companies. 
C)  Secrecy and transparency refer to the degree of caution companies display in valuing assets. 
D)  Companies that list on stock exchanges are highly transparent because of stockholder audits.

Question 5

Both the form and content of financial statements are currently the same in most countries due to the convergence of accounting implemented by the International Accounting Standards Board.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is one of the benefits of using the balanced scorecard approach?

Accepted Answer

A)  It helps managers avoid using only one measure of performance. 
B)  It avoids using financial drivers so that it can focus on nonfinancial drivers. 
C)  It avoids using nonfinancial drivers so that it can focus on financial drivers. 
D)  It is separate from the strategic management system so that it can focus on financial measures. 
A)  It helps managers avoid using only one measure of performance. 
B)  It avoids using financial drivers so that it can focus on nonfinancial drivers. 
C)  It avoids using nonfinancial drivers so that it can focus on financial drivers. 
D)  It is separate from the strategic management system so that it can focus on financial measures.

Question 7

The accounting principle that relates to more,rather than less,extensive footnotes in reports is known as ________.

Accepted Answer

A)  secrecy 
B)  measurement 
C)  conservatism 
D)  transparency 
A)  secrecy 
B)  measurement 
C)  conservatism 
D)  transparency

Question 8

In which quadrant of a disclosure/assessment matrix for accounting systems would you most likely find less-developed Latin countries?

Accepted Answer

A)  conservatism and secrecy 
B)  transparency and conservatism 
C)  secrecy and transparency 
D)  optimism and secrecy 
A)  conservatism and secrecy 
B)  transparency and conservatism 
C)  secrecy and transparency 
D)  optimism and secrecy

Question 9

What factors influence international accounting practices? What forces are leading to the global convergence of accounting practices?

Accepted Answer

Enterprise users,accounting profession,i

Question 10

From an accounting perspective,countries with strong equity markets and shareholder orientations tend to be macro-uniform systems.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 13

Assume a U.S.company purchases equipment from a German supplier for €37,500 when the exchange rate at the time of the transaction is $1.5 per euro,or €0.667 per dollar.The U.S.company doesn't have to pay the German supplier until the end of the month,at which time the euro is now worth only $1.49 per euro or €0.671 per dollar.According to U.S.GAAP,the equipment would be valued at ________.

Accepted Answer

A)  $25,167 
B)  $25,000 
C)  $56,250 
D)  $55,875 
A)  $25,167 
B)  $25,000 
C)  $56,250 
D)  $55,875

Question 14

According to the accounting concept of mutual recognition,________.

Accepted Answer

A)  companies are required to reconcile financial statements to local GAAP 
B)  a country would accept financial statements of foreign companies prepared according to the GAAP of the foreign country if a company wanted to list its shares on that country's stock exchange 
C)  companies would have to mutually agree to use GAAP issued by the IASB 
D)  companies would have to recast their financial statements in terms of local GAAP 
A)  companies are required to reconcile financial statements to local GAAP 
B)  a country would accept financial statements of foreign companies prepared according to the GAAP of the foreign country if a company wanted to list its shares on that country's stock exchange 
C)  companies would have to mutually agree to use GAAP issued by the IASB 
D)  companies would have to recast their financial statements in terms of local GAAP

Question 15

The process of combining financial statements of different subsidiaries into one statement is known as ________.

Accepted Answer

A)  conversion 
B)  translation 
C)  consolidation 
D)  recognition 
A)  conversion 
B)  translation 
C)  consolidation 
D)  recognition

Question 16

When using the current-rate method to translate foreign currency financial statements into the parent currency,translation gains and losses are recognized in comprehensive income.

Accepted Answer

A) True 
 B)False

Question 17

Garrison Industries,a global firm,provides financial information in its annual reports in more than one currency.Garrison Industries is most likely ________.

Accepted Answer

A)  trying to provide information to users from different countries 
B)  providing footnotes to clarify its accounting practices 
C)  implementing global reporting requirements 
D)  altering its losses to show gains 
A)  trying to provide information to users from different countries 
B)  providing footnotes to clarify its accounting practices 
C)  implementing global reporting requirements 
D)  altering its losses to show gains

Question 18

International accounting firms,such as Deloitte and KPMG,have the most influence on ________.

Accepted Answer

A)  international and domestic tax laws 
B)  public record disclosure rules 
C)  global auditing practices 
D)  domestic legal systems 
A)  international and domestic tax laws 
B)  public record disclosure rules 
C)  global auditing practices 
D)  domestic legal systems

Question 19

Assume a U.S.company sells merchandise to a French customer for $200,000 when the exchange rate is $1.5 per euro.At the end of the month,the euro is trading at 1.47,and in the middle of the next month when payment is received,the exchange rate is 1.53.If the U.S.company receives payment in dollars,what is the value of the sale at the end of the month for the U.S.company?

Accepted Answer

A)  $200,000 
B)  $294,000 
C)  $300,000 
D)  $306,000 
A)  $200,000 
B)  $294,000 
C)  $300,000 
D)  $306,000

Question 20

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

Germanic and Japanese companies tend to be more optimistic than U.S.and U.K.companies.

Financial statements typically include ________.

How do exchange rates affect budgets used to evaluate performance in MNEs?

Which of the following statements is most likely true about secrecy and transparency in accounting?

Both the form and content of financial statements are currently the same in most countries due to the convergence of accounting implemented by the International Accounting Standards Board.

Which of the following is one of the benefits of using the balanced scorecard approach?

The accounting principle that relates to more,rather than less,extensive footnotes in reports is known as ________.

In which quadrant of a disclosure/assessment matrix for accounting systems would you most likely find less-developed Latin countries?

What factors influence international accounting practices? What forces are leading to the global convergence of accounting practices?

From an accounting perspective,countries with strong equity markets and shareholder orientations tend to be macro-uniform systems.

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

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

According to the accounting concept of mutual recognition,________.

The process of combining financial statements of different subsidiaries into one statement is known as ________.

When using the current-rate method to translate foreign currency financial statements into the parent currency,translation gains and losses are recognized in comprehensive income.

Garrison Industries,a global firm,provides financial information in its annual reports in more than one currency.Garrison Industries is most likely ________.

International accounting firms,such as Deloitte and KPMG,have the most influence on ________.

Transfer prices are ________.

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

International Trade and Factor-Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

Globalization and Society

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

International Human Resource Management

Filters

Exam 19: International Accounting and Finance Issues

Germanic and Japanese companies tend to be more optimistic than U.S.and U.K.companies.

Financial statements typically include ________.

How do exchange rates affect budgets used to evaluate performance in MNEs?

Which of the following statements is most likely true about secrecy and transparency in accounting?

Both the form and content of financial statements are currently the same in most countries due to the convergence of accounting implemented by the International Accounting Standards Board.

Which of the following is one of the benefits of using the balanced scorecard approach?

The accounting principle that relates to more,rather than less,extensive footnotes in reports is known as ________.

In which quadrant of a disclosure/assessment matrix for accounting systems would you most likely find less-developed Latin countries?

What factors influence international accounting practices? What forces are leading to the global convergence of accounting practices?

From an accounting perspective,countries with strong equity markets and shareholder orientations tend to be macro-uniform systems.

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

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

According to the accounting concept of mutual recognition,________.

The process of combining financial statements of different subsidiaries into one statement is known as ________.

When using the current-rate method to translate foreign currency financial statements into the parent currency,translation gains and losses are recognized in comprehensive income.

Garrison Industries,a global firm,provides financial information in its annual reports in more than one currency.Garrison Industries is most likely ________.

International accounting firms,such as Deloitte and KPMG,have the most influence on ________.

Transfer prices are ________.

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

International Trade and Factor-Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

Globalization and Society

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

International Human Resource Management

Filters