Question 1

The major early influence of Florin, Italy, on accounting was

Accepted Answer

A)  the double entry books of the Massari (treasury officials), which date from 1340. 
B)  the spread of double entry accounting. 
C)  the development of large associations and partnerships that pooled capital. 
D)  accounting records with pretty pictures. 
A)  the double entry books of the Massari (treasury officials), which date from 1340. 
B)  the spread of double entry accounting. 
C)  the development of large associations and partnerships that pooled capital. 
D)  accounting records with pretty pictures. C

Question 2

The Crusades were important in the development of accounting, because

Accepted Answer

A)  the Arabs first developed double entry accounting, which was then adopted by the Italians. 
B)  the Christians needed double entry accounting to keep track of the relative profitability of the different Crusades. 
C)  the trade routes shifted the commercial center from Italy to Constantinople 
D)  none of the above. 
A)  the Arabs first developed double entry accounting, which was then adopted by the Italians. 
B)  the Christians needed double entry accounting to keep track of the relative profitability of the different Crusades. 
C)  the trade routes shifted the commercial center from Italy to Constantinople 
D)  none of the above. D

Question 3

The first exposure a firm has to international accounting is usually

Accepted Answer

A)  the purchase of a subsidiary 
B)  establishment of license of a foreign company 
C)  unsolicited purchase order from a foreign buyer. 
D)  joint venture with another MNE. 
A)  the purchase of a subsidiary 
B)  establishment of license of a foreign company 
C)  unsolicited purchase order from a foreign buyer. 
D)  joint venture with another MNE. C

Question 4

When examining the lists of the largest corporations in the world, it is obvious that

Accepted Answer

A)  European firms dominate the list of large and most profitable firms. 
B)  exchange rates have the potential of distorting the list. 
C)  Japanese companies are the largest in sales and most profitable in the world. 
D)  U.S. companies are the largest in sales but are not among the most profitable. 
A)  European firms dominate the list of large and most profitable firms. 
B)  exchange rates have the potential of distorting the list. 
C)  Japanese companies are the largest in sales and most profitable in the world. 
D)  U.S. companies are the largest in sales but are not among the most profitable.

Question 5

When hyperinflation exists, alternative systems to historical cost become necessary.

Accepted Answer

A) True 
 B)False

Question 6

The International Accounting Standards Board, an international organization dedicated to the diversity of accounting standards worldwide.

Accepted Answer

A) True 
 B)False

Question 7

The emergence of corporations has influenced financial accounting by

Accepted Answer

A)  removing limited liability as a way of hiding corporate responsibility. 
B)  combining ownership and control. 
C)  making transparency less important. 
D)  emphasizing disclosure as part of the necessary means of regulating corporate behavior. 
A)  removing limited liability as a way of hiding corporate responsibility. 
B)  combining ownership and control. 
C)  making transparency less important. 
D)  emphasizing disclosure as part of the necessary means of regulating corporate behavior.

Question 8

The continental accounting system is closely linked to the tax collection system.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is not a part of Pacioli's initial contributions to accounting?

Accepted Answer

A)  His objective was to publish a detailed, mathematical approach to accounting rather than a popular version of accounting that could be used by all. 
B)  He believed that all transactions required both a debit and a credit in order for transactions to remain in equilibrium. 
C)  He introduced the memorandum book, the journal and the ledger. 
D)  The center for the accounting system was the ledger. 
A)  His objective was to publish a detailed, mathematical approach to accounting rather than a popular version of accounting that could be used by all. 
B)  He believed that all transactions required both a debit and a credit in order for transactions to remain in equilibrium. 
C)  He introduced the memorandum book, the journal and the ledger. 
D)  The center for the accounting system was the ledger.

Question 10

Which of the following is true concerning international business?

Accepted Answer

A)  It includes business transactions that involve two or more countries. 
B)  Even if a firm establishes production facilities abroad, it is not engaging in international business unless it also expands sales abroad. 
C)  It has resulted in the shift of technological leadership from the industrial to the emerging developing countries. 
D)  It is conducted exclusively in the private rather than public sector. 
A)  It includes business transactions that involve two or more countries. 
B)  Even if a firm establishes production facilities abroad, it is not engaging in international business unless it also expands sales abroad. 
C)  It has resulted in the shift of technological leadership from the industrial to the emerging developing countries. 
D)  It is conducted exclusively in the private rather than public sector.

Question 11

Which of the following accurately reflects environmental influences on accounting?

Accepted Answer

A)  the social (employee) climate has had a strong impact on accounting in the United States, in contrast to Europe where the social climate is almost irrelevant. 
B)  economic factors have proven to be very influential on accounting, but political factors are not. 
C) taxation is an important factor in situations where accounting systems are strongly influenced by state objectives. 
D)  where there is a more developed accounting profession, there is likely to be centralized and uniform accounting systems, as opposed to judgementally-based systems. 
A)  the social (employee) climate has had a strong impact on accounting in the United States, in contrast to Europe where the social climate is almost irrelevant. 
B)  economic factors have proven to be very influential on accounting, but political factors are not. 
C) taxation is an important factor in situations where accounting systems are strongly influenced by state objectives. 
D)  where there is a more developed accounting profession, there is likely to be centralized and uniform accounting systems, as opposed to judgementally-based systems.

Question 12

The major early Venetian influence on the development of accounting was

Accepted Answer

A)  the development of the gold florin, the standard gold piece used in Europe. 
B)  the spread of double entry accounting. 
C)  the initial development of double entry accounting. 
D)  the establishment of the first banking institutions. 
A)  the development of the gold florin, the standard gold piece used in Europe. 
B)  the spread of double entry accounting. 
C)  the initial development of double entry accounting. 
D)  the establishment of the first banking institutions.

Question 13

One trend in European securities markets is consolidation.

Accepted Answer

A) True 
 B)False

Question 14

The major Genoese influence on accounting was

Accepted Answer

A)  the establishment of Luca Pacioli's first accounting program at the University of Genoa. 
B)  the development of large associations and partnerships that pooled capital. 
C)  the development of the gold florin, the standard gold piece used in Europe. 
D)  the double entry books of the Massari (treasury officials), which date from 1340. 
A)  the establishment of Luca Pacioli's first accounting program at the University of Genoa. 
B)  the development of large associations and partnerships that pooled capital. 
C)  the development of the gold florin, the standard gold piece used in Europe. 
D)  the double entry books of the Massari (treasury officials), which date from 1340.

Question 15

Where would Pacioli first record a transaction?

Accepted Answer

A)  Journal 
B)  Memorandum book 
C)  Financial notes 
D)  Ledger 
A)  Journal 
B)  Memorandum book 
C)  Financial notes 
D)  Ledger

Question 16

As a result of the industrial revolution in the 19th and early 20th centuries,

Accepted Answer

A)  governments got together and decided to require firms to draw up balance sheets every two years. 
B)  it was finally necessary to develop double entry accounting. 
C)  the basic form of business organization shifted to limited liability and joint stock companies. 
D)  fixed assets diminished in importance. 
A)  governments got together and decided to require firms to draw up balance sheets every two years. 
B)  it was finally necessary to develop double entry accounting. 
C)  the basic form of business organization shifted to limited liability and joint stock companies. 
D)  fixed assets diminished in importance.

Question 17

Firms that have a worldwide view of production, sourcing raw materials and components, and final markets are

Accepted Answer

A)  typical of industrial but not service firms. 
B)  multinational enterprises. 
C)  multidomestic enterprises. 
D)  from the industrial but not developing countries. 
A)  typical of industrial but not service firms. 
B)  multinational enterprises. 
C)  multidomestic enterprises. 
D)  from the industrial but not developing countries.

Question 18

Napoleon found the Italian system of accounting to be inefficient.

Accepted Answer

A) True 
 B)False

Question 19

The Genoese system was the first to imply that unlike items could be compared in terms of a common monetary unit.

Accepted Answer

A) True 
 B)False

Question 20

During the pre-industrial period,

Accepted Answer

A)  governments invested in colonies in order to get access to their manufactured goods in exchange for raw materials that came from the colonial power. 
B)  most of the world trade was taking place between the Greeks and Romans. 
C)  the right to trade had become a privilege granted by the states. 
D)  the principle of mercantilism implied that merchants had to provide financial information to the state. 
A)  governments invested in colonies in order to get access to their manufactured goods in exchange for raw materials that came from the colonial power. 
B)  most of the world trade was taking place between the Greeks and Romans. 
C)  the right to trade had become a privilege granted by the states. 
D)  the principle of mercantilism implied that merchants had to provide financial information to the state.

The major early influence of Florin, Italy, on accounting was

The Crusades were important in the development of accounting, because

The first exposure a firm has to international accounting is usually

When examining the lists of the largest corporations in the world, it is obvious that

When hyperinflation exists, alternative systems to historical cost become necessary.

The International Accounting Standards Board, an international organization dedicated to the diversity of accounting standards worldwide.

The emergence of corporations has influenced financial accounting by

The continental accounting system is closely linked to the tax collection system.

Which of the following is not a part of Pacioli's initial contributions to accounting?

Which of the following is true concerning international business?

Which of the following accurately reflects environmental influences on accounting?

The major early Venetian influence on the development of accounting was

One trend in European securities markets is consolidation.

The major Genoese influence on accounting was

Where would Pacioli first record a transaction?

As a result of the industrial revolution in the 19th and early 20th centuries,

Firms that have a worldwide view of production, sourcing raw materials and components, and final markets are

Napoleon found the Italian system of accounting to be inefficient.

The Genoese system was the first to imply that unlike items could be compared in terms of a common monetary unit.

During the pre-industrial period,

International Accounting Patterns, Culture and Development

Comparative International Financial Accounting I

Comparative International Financial Accounting II

International Financial Statement Analysis

International Transparency and Disclosure

International Accounting Standards and Global Convergence

International Business Combinations, Goodwill and Intangibles

International Segment Reporting

Foreign Currency Transactions and Translation

International Accounting for Price Changes

Corporate Governance and Control of Global Operations

Foreign Exchange Risk Management

International Budgeting and Performance Evaluation

International Auditing Issues

International Taxation Issues

Filters

Exam 1: International Accounting and International Business

The major early influence of Florin, Italy, on accounting was

The Crusades were important in the development of accounting, because

The first exposure a firm has to international accounting is usually

When examining the lists of the largest corporations in the world, it is obvious that

When hyperinflation exists, alternative systems to historical cost become necessary.

The International Accounting Standards Board, an international organization dedicated to the diversity of accounting standards worldwide.

The emergence of corporations has influenced financial accounting by

The continental accounting system is closely linked to the tax collection system.

Which of the following is not a part of Pacioli's initial contributions to accounting?

Which of the following is true concerning international business?

Which of the following accurately reflects environmental influences on accounting?

The major early Venetian influence on the development of accounting was

One trend in European securities markets is consolidation.

The major Genoese influence on accounting was

Where would Pacioli first record a transaction?

As a result of the industrial revolution in the 19th and early 20th centuries,

Firms that have a worldwide view of production, sourcing raw materials and components, and final markets are

Napoleon found the Italian system of accounting to be inefficient.

The Genoese system was the first to imply that unlike items could be compared in terms of a common monetary unit.

During the pre-industrial period,

International Accounting Patterns, Culture and Development

Comparative International Financial Accounting I

Comparative International Financial Accounting II

International Financial Statement Analysis

International Transparency and Disclosure

International Accounting Standards and Global Convergence

International Business Combinations, Goodwill and Intangibles

International Segment Reporting

Foreign Currency Transactions and Translation

International Accounting for Price Changes

Corporate Governance and Control of Global Operations

Foreign Exchange Risk Management

International Budgeting and Performance Evaluation

International Auditing Issues

International Taxation Issues

Filters