Exam 19: International Accounting and Finance Issues

According to the translation process in the United States,________.

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

A typical U.S.company uses the following balance sheet format: assets = liabilities + shareholders' equity.

The accounting value that illustrates how companies are more liberal in their recognition of income is ________.

When using a budget for foreign operations,it is important for the parent company to select an exchange rate to set the budget and use that same rate to evaluate performance.

The International Accounting Standards Board is composed of international securities regulators and is attempting to harmonize accounting standards through issuing International Financial Reporting Standards.

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

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

The accounting value that relates to issues such as how to present financial information and discuss financial results is known as ________.

Translation of foreign currency financial statements is the process of restating foreign currency financial statements from one currency into another.

U.S.-based MNEs do not like to use the balanced scorecard for evaluation performance because it does not take into consideration international differences.

How would you classify the accounting values of companies from the United States and the United Kingdom in terms of their measurement and disclosure of financial information?

The standard-setting organization tasked with the challenge of determining one set of accounting standards that can be used worldwide is the ________.

An exchange rate variance results from ________.

Assume that a U.S.-based MNE has operations in Germany and that the revenues and expenses are mostly incurred in Euros.Which translation method is the MNE most likely to use?

How do U.S.companies recognize transaction gains and losses in the financial statements?

German companies like Deutsche Bank and Daimler Chrysler have been relatively optimistic and transparent in their financial reporting compared with many Germanic companies because ________.

Vanessa,a manager at an MNE,has been given the task of measuring the firm's performance by using the balanced scorecard approach.Which of the following would be best for Vanessa?

Germany's accounting system has historically been a ________ system.

What metrics are used to measure the performance of an MNE? How is the balanced scorecard approach unique?