Question 1

There is a positive correlation between corruption and accounting standards.

Accepted Answer

A) True 
 B)False  False

Question 2

In terms of Research and Development (R&D) and capital investments,

Accepted Answer

A)  few firms disclose R&D information. 
B)  Germany, Japan, the Netherlands, Switzerland, and U.K. all exhibit higher levels of disclosure in both R&D and investment programs than most other countries. 
C)  all firms are required by the U.N. to disclose their capital investment program, and compliance is quite high. 
D)  it is very common for companies to disclose their investment program by geographical area. 
A)  few firms disclose R&D information. 
B)  Germany, Japan, the Netherlands, Switzerland, and U.K. all exhibit higher levels of disclosure in both R&D and investment programs than most other countries. 
C)  all firms are required by the U.N. to disclose their capital investment program, and compliance is quite high. 
D)  it is very common for companies to disclose their investment program by geographical area. B

Question 3

Annual report disclosure appears to be a necessary, but not sufficient component of corporate transparency.

Accepted Answer

A) True 
 B)False  True

Question 4

The value of the annual report as opposed to just the financial statements is that

Accepted Answer

A)  the annual report must contain a quantitative forecast of earnings. 
B)  management can provide a good qualitative discussion of the financial information. 
C)  financial information is usually not very accurate, so potential investors can rely more on management impressions. 
D)  management is more likely to provide more financial information in its annual report than it is in its financial statements. 
A)  the annual report must contain a quantitative forecast of earnings. 
B)  management can provide a good qualitative discussion of the financial information. 
C)  financial information is usually not very accurate, so potential investors can rely more on management impressions. 
D)  management is more likely to provide more financial information in its annual report than it is in its financial statements.

Question 5

In cross-border contexts, voluntary disclosures are forthcoming when corporations are competing for finance from investors.

Accepted Answer

A) True 
 B)False

Question 6

All of the following international organizations are now issuing more detailed accounting requirements except

Accepted Answer

A)  PGA 
B)  UN 
C)  OECD D. IASC 
A)  PGA 
B)  UN 
C)  OECD D. IASC

Question 7

Because of the Internet, transparency has become less important over time.

Accepted Answer

A) True 
 B)False

Question 8

Information regarding to future prospects

Accepted Answer

A)  is rarely provided in annual reports. 
B)  is usually in the form of a narrative rather than in quantitative terms. 
C)  is not considered to be a threat from a competitive disadvantage point of view since all firms are required to disclose this information if they list on a stock exchange. 
D)  is not very high in the United States due to the investor orientation. 
A)  is rarely provided in annual reports. 
B)  is usually in the form of a narrative rather than in quantitative terms. 
C)  is not considered to be a threat from a competitive disadvantage point of view since all firms are required to disclose this information if they list on a stock exchange. 
D)  is not very high in the United States due to the investor orientation.

Question 9

In terms of segment information,

Accepted Answer

A)  segment reviews of operations are not very well established. 
B)  segment disclosures are required by the U.N. but only recommended by the EU. 
C)  it is common to find a review of business segments. 
D)  the review of business segments rarely provides information in excess of the actual segments. 
A)  segment reviews of operations are not very well established. 
B)  segment disclosures are required by the U.N. but only recommended by the EU. 
C)  it is common to find a review of business segments. 
D)  the review of business segments rarely provides information in excess of the actual segments.

Question 10

Human resource information

Accepted Answer

A)  is essential for investors and shareholders. 
B)  especially in the area of labor and employment is more detailed and helpful in U.S. reports than in European reports. 
C)  is provided in a format that is required by the IASC. 
D)  none of the above. 
A)  is essential for investors and shareholders. 
B)  especially in the area of labor and employment is more detailed and helpful in U.S. reports than in European reports. 
C)  is provided in a format that is required by the IASC. 
D)  none of the above.

Question 11

There are direct and indirect costs of disclosure.

Accepted Answer

A) True 
 B)False

Question 12

A mission statement

Accepted Answer

A)  is what the chair person gives 
B)  is part of a capital expenditure program 
C)  is increasingly included in a review of corporate strategy and results 
D)  is included with other value-added information 
A)  is what the chair person gives 
B)  is part of a capital expenditure program 
C)  is increasingly included in a review of corporate strategy and results 
D)  is included with other value-added information

Question 13

The value added statement

Accepted Answer

A)  provides information about the contribution of all corporate stakeholders to the success of the business. 
B)  is used to determine how much value-added tax corporations pay. 
C)  is generated primarily for potential investors and shareholders. 
D)  is provided by the majority of European companies, although it is rarely provided by U.S. firms. 
A)  provides information about the contribution of all corporate stakeholders to the success of the business. 
B)  is used to determine how much value-added tax corporations pay. 
C)  is generated primarily for potential investors and shareholders. 
D)  is provided by the majority of European companies, although it is rarely provided by U.S. firms.

Question 14

Subsequent to the Asian "flu" financial crisis, voluntary disclosure increased in Indonesia.

Accepted Answer

A) True 
 B)False

Question 15

The concept of user comprehension implies that

Accepted Answer

A)  understandability is improved with more information. 
B)  greater information is making financial analysis more complex. 
C)  the simplification of annual reports is leaving out information not necessary for financial analysis. 
D)  all of the above. 
A)  understandability is improved with more information. 
B)  greater information is making financial analysis more complex. 
C)  the simplification of annual reports is leaving out information not necessary for financial analysis. 
D)  all of the above.

Question 16

Which of the following are considered by managers to generate the greatest cost of competitive disadvantage?

Accepted Answer

A)  line of business profits, narrowly defined. 
B)  inflation adjusted profits. 
C)  a description of organizational structure. 
D)  quarterly interim financial statements. 
A)  line of business profits, narrowly defined. 
B)  inflation adjusted profits. 
C)  a description of organizational structure. 
D)  quarterly interim financial statements.

Question 17

Canada

Accepted Answer

A)  makes no requirement how often reports must be issued 
B)  requires half yearly reports 
C)  requires annual reports 
D)  requires quarterly reports 
A)  makes no requirement how often reports must be issued 
B)  requires half yearly reports 
C)  requires annual reports 
D)  requires quarterly reports

Question 18

Which of the following is true concerning managerial incentives to disclose information?

Accepted Answer

A)  More information increases uncertainty about financial performance. 
B)  More disclosure increases the cost of capital, causing stock prices to fall. 
C)  Information disclosure is usually neutral. 
D)  More information usually helps managers get better access to external capital. 
A)  More information increases uncertainty about financial performance. 
B)  More disclosure increases the cost of capital, causing stock prices to fall. 
C)  Information disclosure is usually neutral. 
D)  More information usually helps managers get better access to external capital.

Question 19

Segment reviews of operations on a geographical basis are

Accepted Answer

A)  usually incorporated in the review of business segments. 
B)  separately discussed by a majority of MNEs. . rarely provided by MNEs.
) provided by most MNEs except those from Japan. 
A)  usually incorporated in the review of business segments. 
B)  separately discussed by a majority of MNEs. . rarely provided by MNEs.
) provided by most MNEs except those from Japan.

Question 20

The EU Directive on Interim Reports

Accepted Answer

A)  makes no requirement how often reports must be issued 
B)  requires half yearly reports 
C)  requires annual reports 
D)  requires quarterly reports 
A)  makes no requirement how often reports must be issued 
B)  requires half yearly reports 
C)  requires annual reports 
D)  requires quarterly reports

There is a positive correlation between corruption and accounting standards.

In terms of Research and Development (R&D) and capital investments,

Annual report disclosure appears to be a necessary, but not sufficient component of corporate transparency.

The value of the annual report as opposed to just the financial statements is that

In cross-border contexts, voluntary disclosures are forthcoming when corporations are competing for finance from investors.

All of the following international organizations are now issuing more detailed accounting requirements except

Because of the Internet, transparency has become less important over time.

Information regarding to future prospects

In terms of segment information,

Human resource information

There are direct and indirect costs of disclosure.

A mission statement

The value added statement

Subsequent to the Asian "flu" financial crisis, voluntary disclosure increased in Indonesia.

The concept of user comprehension implies that

Which of the following are considered by managers to generate the greatest cost of competitive disadvantage?

Canada

Which of the following is true concerning managerial incentives to disclose information?

Segment reviews of operations on a geographical basis are

The EU Directive on Interim Reports

International Accounting and International Business

International Accounting Patterns, Culture and Development

Comparative International Financial Accounting I

Comparative International Financial Accounting II

International Financial Statement Analysis

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 6: International Transparency and Disclosure

There is a positive correlation between corruption and accounting standards.

In terms of Research and Development (R&D) and capital investments,

Annual report disclosure appears to be a necessary, but not sufficient component of corporate transparency.

The value of the annual report as opposed to just the financial statements is that

In cross-border contexts, voluntary disclosures are forthcoming when corporations are competing for finance from investors.

All of the following international organizations are now issuing more detailed accounting requirements except

Because of the Internet, transparency has become less important over time.

Information regarding to future prospects

In terms of segment information,

Human resource information

There are direct and indirect costs of disclosure.

A mission statement

The value added statement

Subsequent to the Asian "flu" financial crisis, voluntary disclosure increased in Indonesia.

The concept of user comprehension implies that

Which of the following are considered by managers to generate the greatest cost of competitive disadvantage?

Canada

Which of the following is true concerning managerial incentives to disclose information?

Segment reviews of operations on a geographical basis are

The EU Directive on Interim Reports

International Accounting and International Business

International Accounting Patterns, Culture and Development

Comparative International Financial Accounting I

Comparative International Financial Accounting II

International Financial Statement Analysis

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