Question 1

The increased supply of financial information by MNEs appears to have

Accepted Answer

A)  satisfied labor unions but not governments. 
B)  resulted in more precise disclosure requirements by governments. 
C)  resulted in the demand for additional information. 
D)  resulted in a greater simplification in financial statements. 
A)  satisfied labor unions but not governments. 
B)  resulted in more precise disclosure requirements by governments. 
C)  resulted in the demand for additional information. 
D)  resulted in a greater simplification in financial statements.

Question 2

MNEs provide more information in their annual reports than regulations require.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following are considered by managers to generate the greatest net costs?

Accepted Answer

A)  a description of major environmental projects. 
B)  geographical sales, broadly defined. 
C)  a description of major new products. 
D)  inflation adjusted profits. 
A)  a description of major environmental projects. 
B)  geographical sales, broadly defined. 
C)  a description of major new products. 
D)  inflation adjusted profits.

Question 4

As of 2005 only a small percentage of the Global 500 provide financial statements on the Internet.

Accepted Answer

A) True 
 B)False

Question 5

Simplifying information in annual reports

Accepted Answer

A)  may increase the size of annual reports. 
B)  could decrease the cost of capital. 
C)  could reduce the readership of financial reports. 
D)  may result in the omission of essential information useful to the direct users. 
A)  may increase the size of annual reports. 
B)  could decrease the cost of capital. 
C)  could reduce the readership of financial reports. 
D)  may result in the omission of essential information useful to the direct users.

Question 6

The overall amount of voluntary disclosures is

Accepted Answer

A)  highest from continental European companies 
B)  highest from US companies 
C)  highest from UK companies 
D)  lowest from continental European companies 
A)  highest from continental European companies 
B)  highest from US companies 
C)  highest from UK companies 
D)  lowest from continental European companies

Question 7

In terms of the financial review,

Accepted Answer

A)  it is not very common for companies to provide an analysis of results. 
B)  U.S. companies tend to provide more detailed information in their financial review, especially with regard to events having a potential impact on earnings. 
C)  most companies analyze their asset values and the impact of inflation on values. 
D)  very few companies analyze liquidity and capital resources. 
A)  it is not very common for companies to provide an analysis of results. 
B)  U.S. companies tend to provide more detailed information in their financial review, especially with regard to events having a potential impact on earnings. 
C)  most companies analyze their asset values and the impact of inflation on values. 
D)  very few companies analyze liquidity and capital resources.

Question 8

The EU 4th and 7th Directives require

Accepted Answer

A)  the quantification of a forecast of earnings. 
B)  the discussion of R&D analyzed by product. 
C)  an indication of important events since the end of the year and any likely future development. 
D)  any environmental measures taken. 
A)  the quantification of a forecast of earnings. 
B)  the discussion of R&D analyzed by product. 
C)  an indication of important events since the end of the year and any likely future development. 
D)  any environmental measures taken.

Question 9

There is growing evidence that corporate reports are neither read or understood by a considerable percentage of the target audience.

Accepted Answer

A) True 
 B)False

Question 10

The overall quantity and levels of disclosure

Accepted Answer

A)  is generally similar across the world 
B)  is the lowest in London 
C)  is the highest in Switzerland 
D)  has significant variation in the world 
A)  is generally similar across the world 
B)  is the lowest in London 
C)  is the highest in Switzerland 
D)  has significant variation in the world

Question 11

In terms of interim reports,

Accepted Answer

A)  the EU 4th Directive requires that companies disclose quarterly reports. 
B)  a major difference between the U.S. and Canada is that the U.S. requires quarterly reports, but the Canadians follow the European tradition of not requiring quarterly reports. 
C)  EU companies are required to provide semiannual reports of abridged information. 
D)  the SEC requires all foreign firms that list in the United States to provide quarterly earnings information. 
A)  the EU 4th Directive requires that companies disclose quarterly reports. 
B)  a major difference between the U.S. and Canada is that the U.S. requires quarterly reports, but the Canadians follow the European tradition of not requiring quarterly reports. 
C)  EU companies are required to provide semiannual reports of abridged information. 
D)  the SEC requires all foreign firms that list in the United States to provide quarterly earnings information.

Question 12

The direct costs of disclosure involve the

Accepted Answer

A)  threat of takeover or merger. 
B)  cost of data collection and processing. 
C)  possibility of intervention by government agencies. 
D)  possibility of claims from political or consumer groups. 
E)  all of the above. 
A)  threat of takeover or merger. 
B)  cost of data collection and processing. 
C)  possibility of intervention by government agencies. 
D)  possibility of claims from political or consumer groups. 
E)  all of the above.

Question 13

Competitive disadvantage

Accepted Answer

A)  of increased disclosure will likely increase business incentives in the long term 
B)  affects the cost of data collection and processing. 
C)  is the most important cost factor in voluntary disclosures 
D)  increases direct disclosure costs 
A)  of increased disclosure will likely increase business incentives in the long term 
B)  affects the cost of data collection and processing. 
C)  is the most important cost factor in voluntary disclosures 
D)  increases direct disclosure costs

Question 14

The cost of audit and communication is an example of

Accepted Answer

A)  the direct costs of disclosure. 
B)  cost of competitive disadvantage. 
C)  indirect costs of disclosure. 
D)  the benefits of increased disclosure. 
A)  the direct costs of disclosure. 
B)  cost of competitive disadvantage. 
C)  indirect costs of disclosure. 
D)  the benefits of increased disclosure.

Question 15

Transparency

Accepted Answer

A)  is consistent with confidentiality 
B)  is not an issue if the corporate report has reliable information 
C)  helps investors distinguish between good and bad quality firms 
D)  associates directly with the level of corruption 
A)  is consistent with confidentiality 
B)  is not an issue if the corporate report has reliable information 
C)  helps investors distinguish between good and bad quality firms 
D)  associates directly with the level of corruption

Question 16

Increasingly, many MNEs provide social responsibility information reports.

Accepted Answer

A) True 
 B)False

Question 17

The mutuality of interests concept related to information disclosure implies that

Accepted Answer

A)  disclosure may help users be more aware of common interests, improving cooperation. 
B)  increased disclosure increases uncertainty about financial performance. 
C)  user benefits always exceed costs. 
D)  it is difficult to measure the costs and benefits of disclosure. 
A)  disclosure may help users be more aware of common interests, improving cooperation. 
B)  increased disclosure increases uncertainty about financial performance. 
C)  user benefits always exceed costs. 
D)  it is difficult to measure the costs and benefits of disclosure.

Question 18

Inflation accounting

Accepted Answer

A)  is given by most MNEs 
B)  is required in Japan 
C)  is found in South America 
D)  is required in US GAAP 
A)  is given by most MNEs 
B)  is required in Japan 
C)  is found in South America 
D)  is required in US GAAP

Question 19

The recent Asian financial crisis

Accepted Answer

A)  might have been prevented with decreased transparency 
B)  was the result of inconsistent accounting standards 
C)  could have been prevented with better computer systems 
D)  might have been prevented with increased transparency 
A)  might have been prevented with decreased transparency 
B)  was the result of inconsistent accounting standards 
C)  could have been prevented with better computer systems 
D)  might have been prevented with increased transparency

Question 20

In terms of interim reports,

Accepted Answer

A)  the IASB requires that companies disclose quarterly reports. 
B)  the European tradition has always required quarterly reports. 
C)  the IASB specifies content, but does not specify frequency. 
D)  very few MNEs provide information beyond the EU directive 
A)  the IASB requires that companies disclose quarterly reports. 
B)  the European tradition has always required quarterly reports. 
C)  the IASB specifies content, but does not specify frequency. 
D)  very few MNEs provide information beyond the EU directive

The increased supply of financial information by MNEs appears to have

MNEs provide more information in their annual reports than regulations require.

Which of the following are considered by managers to generate the greatest net costs?

As of 2005 only a small percentage of the Global 500 provide financial statements on the Internet.

Simplifying information in annual reports

The overall amount of voluntary disclosures is

In terms of the financial review,

The EU 4th and 7th Directives require

There is growing evidence that corporate reports are neither read or understood by a considerable percentage of the target audience.

The overall quantity and levels of disclosure

In terms of interim reports,

The direct costs of disclosure involve the

Competitive disadvantage

The cost of audit and communication is an example of

Transparency

Increasingly, many MNEs provide social responsibility information reports.

The mutuality of interests concept related to information disclosure implies that

Inflation accounting

The recent Asian financial crisis

In terms of 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

The increased supply of financial information by MNEs appears to have

MNEs provide more information in their annual reports than regulations require.

Which of the following are considered by managers to generate the greatest net costs?

As of 2005 only a small percentage of the Global 500 provide financial statements on the Internet.

Simplifying information in annual reports

The overall amount of voluntary disclosures is

In terms of the financial review,

The EU 4th and 7th Directives require

There is growing evidence that corporate reports are neither read or understood by a considerable percentage of the target audience.

The overall quantity and levels of disclosure

In terms of interim reports,

The direct costs of disclosure involve the

Competitive disadvantage

The cost of audit and communication is an example of

Transparency

Increasingly, many MNEs provide social responsibility information reports.

The mutuality of interests concept related to information disclosure implies that

Inflation accounting

The recent Asian financial crisis

In terms of 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