Question 1

All of the following are trade unions except

Accepted Answer

A)  ETUC 
B)  ICFTU 
C)  WCL 
D)  IASC 
A)  ETUC 
B)  ICFTU 
C)  WCL 
D)  IASC D

Question 2

According to the 4th Directive of the EU,

Accepted Answer

A)  companies must use the horizontal format for the balance sheet. 
B)  the vertical balance sheet includes current liabilities with current assets. 
C)  companies must report a cost of goods sold. 
D)  all personnel expenses must be included as a separate line item on the income statement due to the strength of unions in Europe. 
A)  companies must use the horizontal format for the balance sheet. 
B)  the vertical balance sheet includes current liabilities with current assets. 
C)  companies must report a cost of goods sold. 
D)  all personnel expenses must be included as a separate line item on the income statement due to the strength of unions in Europe. B

Question 3

The OECD Guidelines for Multinational Enterprises has the aim of strengthening confidence between MNEs and governments.

Accepted Answer

A) True 
 B)False  True

Question 4

The International Accounting Standards Committee requires the following segment information:

Accepted Answer

A)  There is no IASC standard at this point. 
B)  sales and profits by line of business. 
C)  sales but not profits for geographic areas. 
D)  sales but not profits for line of business. 
A)  There is no IASC standard at this point. 
B)  sales and profits by line of business. 
C)  sales but not profits for geographic areas. 
D)  sales but not profits for line of business.

Question 5

According to the 7th Directive of the EU,

Accepted Answer

A)  worldwide consolidation is required. 
B)  companies are required to consolidate domestic but not foreign subsidiaries. 
C)  a group is defined by share ownership and legal rights rather than by effective management control. 
D)  the equity method cannot be used for accounting for affiliates. 
A)  worldwide consolidation is required. 
B)  companies are required to consolidate domestic but not foreign subsidiaries. 
C)  a group is defined by share ownership and legal rights rather than by effective management control. 
D)  the equity method cannot be used for accounting for affiliates.

Question 6

Trade unions want accounting information

Accepted Answer

A)  for cost-volume profit analyses 
B)  to make sure MNEs pay proper taxes 
C)  for contract bargaining purposes 
D)  to facilitate outsourcing 
A)  for cost-volume profit analyses 
B)  to make sure MNEs pay proper taxes 
C)  for contract bargaining purposes 
D)  to facilitate outsourcing

Question 7

Which of the following is true concerning the demand by governments for information?

Accepted Answer

A)  Intergovernmental organizations are better than individual countries at gaining access to better information from MNEs. 
B)  Governments have not been very active in leading the call for better information. 
C)  Governments are relatively pleased with the quality of the information that they can extract from MNEs to evaluate their impact on countries. 
D)  Since all government agencies need the same information from MNEs, it is highly efficient to use published annual reports. 
A)  Intergovernmental organizations are better than individual countries at gaining access to better information from MNEs. 
B)  Governments have not been very active in leading the call for better information. 
C)  Governments are relatively pleased with the quality of the information that they can extract from MNEs to evaluate their impact on countries. 
D)  Since all government agencies need the same information from MNEs, it is highly efficient to use published annual reports.

Question 8

IOSCO is

Accepted Answer

A)  a part of the UN 
B)  a relic of the European customs union 
C)  an organization of securities market regulators 
D)  a group of accountants 
A)  a part of the UN 
B)  a relic of the European customs union 
C)  an organization of securities market regulators 
D)  a group of accountants

Question 9

The International Accounting Standards Committee:

Accepted Answer

A)  has a IASC standard for everything at this point. 
B)  has a compliance problem. 
C)  is primarily supported by the EU financing. 
D)  exists to help corporations get higher stock prices. 
A)  has a IASC standard for everything at this point. 
B)  has a compliance problem. 
C)  is primarily supported by the EU financing. 
D)  exists to help corporations get higher stock prices.

Question 10

Which of the following is an example of a group involved in harmonization of accounting that represents the accounting profession?

Accepted Answer

A)  the IASC. 
B)  the EU. 
C)  the OECD. 
D)  the UN. 
A)  the IASC. 
B)  the EU. 
C)  the OECD. 
D)  the UN.

Question 11

A main information concern of trade unions is

Accepted Answer

A)  transfer pricing 
B)  inflation data 
C)  production quotas 
D)  stock prices 
A)  transfer pricing 
B)  inflation data 
C)  production quotas 
D)  stock prices

Question 12

Pressures for harmonization of international accounting as means to achieve comparability are growing.

Accepted Answer

A) True 
 B)False

Question 13

According to the IASC's project on "Comparability of Financial Statements,"

Accepted Answer

A)  most of the choices of accounting treatment currently permitted under International Accounting Standards have been eliminated. 
B)  all alternative treatments to accounting issues must be eliminated. 
C)  global securities exchanges are required to use IASC standards. 
D)  firms desiring to list on global exchanges must have financial statements that are comparable to national firms listed on the same exchanges. 
A)  most of the choices of accounting treatment currently permitted under International Accounting Standards have been eliminated. 
B)  all alternative treatments to accounting issues must be eliminated. 
C)  global securities exchanges are required to use IASC standards. 
D)  firms desiring to list on global exchanges must have financial statements that are comparable to national firms listed on the same exchanges.

Question 14

Investors are concerned about

Accepted Answer

A)  up-to-date measurements of earnings 
B)  lack of comparability of MNEs 
C)  the informational content of MNE reports 
D)  all of the above 
A)  up-to-date measurements of earnings 
B)  lack of comparability of MNEs 
C)  the informational content of MNE reports 
D)  all of the above

Question 15

As a result of the call for harmonization and better disclosure,

Accepted Answer

A)  global investors are now able to make more informed international comparisons. 
B)  governments are better able to understand and constrain the activities of MNEs. 
C)  different information needs between and within groups may lead to conflicting demands for information. 
D)  all of the above. 
A)  global investors are now able to make more informed international comparisons. 
B)  governments are better able to understand and constrain the activities of MNEs. 
C)  different information needs between and within groups may lead to conflicting demands for information. 
D)  all of the above.

Question 16

Which of the following organizations has been the most effective government organization at harmonizing accounting practices?

Accepted Answer

A)  the United Nations. 
B)  the Organization for Economic Cooperation and Development. 
C)  the International Accounting Standards Committee. 
D)  the European Union. 
A)  the United Nations. 
B)  the Organization for Economic Cooperation and Development. 
C)  the International Accounting Standards Committee. 
D)  the European Union.

Question 17

In the European Union, the Fourth and Seventh Directives effectively allow corporations a choice of accounting alternatives in many instances.

Accepted Answer

A) True 
 B)False

Question 18

International accounting firms are not active in the international harmonization of accounting and reporting.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is true concerning the pressures for information disclosure?

Accepted Answer

A)  Companies are not overly concerned about the demand for disclosure due to increasing sophistication of information systems. 
B)  The internationalization of capital markets is leading to the demand for more comparable information. 
C)  Corporate annual reports contain sufficient information for all user groups. 
D)  The simplification of information is leading to greater understandability of financial statements. 
A)  Companies are not overly concerned about the demand for disclosure due to increasing sophistication of information systems. 
B)  The internationalization of capital markets is leading to the demand for more comparable information. 
C)  Corporate annual reports contain sufficient information for all user groups. 
D)  The simplification of information is leading to greater understandability of financial statements.

Question 20

The UN group of experts ISAR was formed to deal with the information overload from MNEs.

Accepted Answer

A) True 
 B)False

All of the following are trade unions except

According to the 4th Directive of the EU,

The OECD Guidelines for Multinational Enterprises has the aim of strengthening confidence between MNEs and governments.

The International Accounting Standards Committee requires the following segment information:

According to the 7th Directive of the EU,

Trade unions want accounting information

Which of the following is true concerning the demand by governments for information?

IOSCO is

The International Accounting Standards Committee:

Which of the following is an example of a group involved in harmonization of accounting that represents the accounting profession?

A main information concern of trade unions is

Pressures for harmonization of international accounting as means to achieve comparability are growing.

According to the IASC's project on "Comparability of Financial Statements,"

Investors are concerned about

As a result of the call for harmonization and better disclosure,

Which of the following organizations has been the most effective government organization at harmonizing accounting practices?

In the European Union, the Fourth and Seventh Directives effectively allow corporations a choice of accounting alternatives in many instances.

International accounting firms are not active in the international harmonization of accounting and reporting.

Which of the following is true concerning the pressures for information disclosure?

The UN group of experts ISAR was formed to deal with the information overload from MNEs.

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 Transparency and Disclosure

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 7: International Accounting Standards and Global Convergence

All of the following are trade unions except

According to the 4th Directive of the EU,

The OECD Guidelines for Multinational Enterprises has the aim of strengthening confidence between MNEs and governments.

The International Accounting Standards Committee requires the following segment information:

According to the 7th Directive of the EU,

Trade unions want accounting information

Which of the following is true concerning the demand by governments for information?

IOSCO is

The International Accounting Standards Committee:

Which of the following is an example of a group involved in harmonization of accounting that represents the accounting profession?

A main information concern of trade unions is

Pressures for harmonization of international accounting as means to achieve comparability are growing.

According to the IASC's project on "Comparability of Financial Statements,"

Investors are concerned about

As a result of the call for harmonization and better disclosure,

Which of the following organizations has been the most effective government organization at harmonizing accounting practices?

In the European Union, the Fourth and Seventh Directives effectively allow corporations a choice of accounting alternatives in many instances.

International accounting firms are not active in the international harmonization of accounting and reporting.

Which of the following is true concerning the pressures for information disclosure?

The UN group of experts ISAR was formed to deal with the information overload from MNEs.

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 Transparency and Disclosure

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