Question 1

When comparing disclosure practices of MNE worldwide,

Accepted Answer

A)  very few firms other than those in Anglo-Saxon countries provide a review of business. 
B)  Europeans tend to disclose more information about employees than do U.S. firms. 
C)  stock market pressures are not as important a source of influence on corporate review information as are employees and governments. 
D)  none of the above. 
A)  very few firms other than those in Anglo-Saxon countries provide a review of business. 
B)  Europeans tend to disclose more information about employees than do U.S. firms. 
C)  stock market pressures are not as important a source of influence on corporate review information as are employees and governments. 
D)  none of the above.

Question 2

The SEC does not now require the reconciliation of IFRS financial statements to US GAAP.

Accepted Answer

A) True 
 B)False

Question 3

According to the 4th Directive of the EC,

Accepted Answer

A)  the "true and fair view" must be used by countries that do not have an adequate companies law. 
B)  accounting directives must be adopted by the accounting profession rather than included in national law. 
C)  all companies, regardless of size, will have to use the same financial statement formats. 
D)  EU companies must now adopt more similar approaches to information disclosure, classification and presentation of information, and methods of valuation. 
A)  the "true and fair view" must be used by countries that do not have an adequate companies law. 
B)  accounting directives must be adopted by the accounting profession rather than included in national law. 
C)  all companies, regardless of size, will have to use the same financial statement formats. 
D)  EU companies must now adopt more similar approaches to information disclosure, classification and presentation of information, and methods of valuation.

Question 4

Analysis of MNE aggregate results requires knowledge of the component parts of the following except

Accepted Answer

A)  certification of the COFRI 
B)  profitability 
C)  degree of risk 
D)  potential for growth 
A)  certification of the COFRI 
B)  profitability 
C)  degree of risk 
D)  potential for growth

Question 5

International trade union organizations try to get MNE transfer pricing policies.

Accepted Answer

A) True 
 B)False

Question 6

Following the issuance of several directives in the EU, including the 4th, 7th and 8th, it appears that

Accepted Answer

A)  the EU is ready to issue a series of new accounting regulations. 
B)  Europeans prefer to have a set of standards that all countries would follow rather than the current level of flexibility. 
C)  stock exchanges are losing their influence. 
D)  mutual recognition of each other's accounting standards and practices is becoming the norm. 
A)  the EU is ready to issue a series of new accounting regulations. 
B)  Europeans prefer to have a set of standards that all countries would follow rather than the current level of flexibility. 
C)  stock exchanges are losing their influence. 
D)  mutual recognition of each other's accounting standards and practices is becoming the norm.

Question 7

According to the 4th Directive of the EU, the operational basis for the income statement means that

Accepted Answer

A)  a horizontal format must be used. 
B)  there is a separate line item for staff costs. 
C)  depreciation is considered a liability. 
D)  cost of goods sold is presented as a line item. 
A)  a horizontal format must be used. 
B)  there is a separate line item for staff costs. 
C)  depreciation is considered a liability. 
D)  cost of goods sold is presented as a line item.

Question 8

Major user groups

Accepted Answer

A)  agree on what information disclosures should be mandatory 
B)  can enforce compliance with standards 
C)  do not all agree on what information disclosures should be mandatory 
D)  none of the above. 
A)  agree on what information disclosures should be mandatory 
B)  can enforce compliance with standards 
C)  do not all agree on what information disclosures should be mandatory 
D)  none of the above.

Question 9

Trade unions tend to be grounded in a national territory.

Accepted Answer

A) True 
 B)False

Question 10

The European Union and the Organization for Economic Cooperation and Development differ from each other in terms of their accounting harmonization efforts, because

Accepted Answer

A)  the OECD represents primarily developing countries, whereas the EU represents industrial countries. 
B)  the EU has the force of law behind it, whereas the OECD can only recommend disclosure practices. 
C)  the EU is involved only in measurement, whereas the OECD is only interested in disclosure. 
D)  the OECD represents the profession, whereas the EU represents governments. 
A)  the OECD represents primarily developing countries, whereas the EU represents industrial countries. 
B)  the EU has the force of law behind it, whereas the OECD can only recommend disclosure practices. 
C)  the EU is involved only in measurement, whereas the OECD is only interested in disclosure. 
D)  the OECD represents the profession, whereas the EU represents governments.

Question 11

The Vredeling proposals called for the regular provision of information about MNE subsidiaries.

Accepted Answer

A) True 
 B)False

Question 12

Trade unions do not want accounting information for interfirm comparisons, but for

Accepted Answer

A)  specific line item analysis 
B)  policy formulation 
C)  checking MNE labor law violations 
D)  tax avoidance 
A)  specific line item analysis 
B)  policy formulation 
C)  checking MNE labor law violations 
D)  tax avoidance

Question 13

The IASC stated objectives are to
I. formulate and publish in the public interest accounting standards
II. work for the improvement and harmonization of regulations
III. try to raise stock prices

Accepted Answer

A)  I only 
B)  II only 
C)  III only 
D)  I and II 
E)  I and III 
A)  I only 
B)  II only 
C)  III only 
D)  I and II 
E)  I and III

Question 14

Investors have problems with MNE financial statements because

Accepted Answer

A)  worldwide consolidations are not the norm in all countries 
B)  competitive effects of other investors 
C)  FASB is the principal source of GAAP 
D)  governments ask for comparability 
A)  worldwide consolidations are not the norm in all countries 
B)  competitive effects of other investors 
C)  FASB is the principal source of GAAP 
D)  governments ask for comparability

Question 15

Which of the following is true concerning the impact of the United Nations on accounting?

Accepted Answer

A)  The U.N. generally represents the wishes of industrial countries. 
B)  It has been more effective at monitoring accounting practices than at setting accounting standards. 
C)  It has not been able to establish guidelines for accounting practices due to internal disagreements. 
D)  It has been interested in nonfinancial rather than financial disclosures. 
A)  The U.N. generally represents the wishes of industrial countries. 
B)  It has been more effective at monitoring accounting practices than at setting accounting standards. 
C)  It has not been able to establish guidelines for accounting practices due to internal disagreements. 
D)  It has been interested in nonfinancial rather than financial disclosures.

Question 16

Trade unions are not one of the major participant groups influencing MNE information disclosure.

Accepted Answer

A) True 
 B)False

Question 17

Disclosure levels vary across the world's stock markets but

Accepted Answer

A)  disclosure in the U.S. is among the lowest. 
B)  disclosure levels in the U.K. ranks among the highest. 
C)  Swiss disclosure levels are the highest in the world. 
D)  German disclosure levels are comparable with the U.S. 
A)  disclosure in the U.S. is among the lowest. 
B)  disclosure levels in the U.K. ranks among the highest. 
C)  Swiss disclosure levels are the highest in the world. 
D)  German disclosure levels are comparable with the U.S.

When comparing disclosure practices of MNE worldwide,

The SEC does not now require the reconciliation of IFRS financial statements to US GAAP.

According to the 4th Directive of the EC,

Analysis of MNE aggregate results requires knowledge of the component parts of the following except

International trade union organizations try to get MNE transfer pricing policies.

Following the issuance of several directives in the EU, including the 4th, 7th and 8th, it appears that

According to the 4th Directive of the EU, the operational basis for the income statement means that

Major user groups

Trade unions tend to be grounded in a national territory.

The European Union and the Organization for Economic Cooperation and Development differ from each other in terms of their accounting harmonization efforts, because

The Vredeling proposals called for the regular provision of information about MNE subsidiaries.

Trade unions do not want accounting information for interfirm comparisons, but for

The IASC stated objectives are to I. formulate and publish in the public interest accounting standards II. work for the improvement and harmonization of regulations III. try to raise stock prices

Investors have problems with MNE financial statements because

Which of the following is true concerning the impact of the United Nations on accounting?

Trade unions are not one of the major participant groups influencing MNE information disclosure.

Disclosure levels vary across the world's stock markets but

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

When comparing disclosure practices of MNE worldwide,

The SEC does not now require the reconciliation of IFRS financial statements to US GAAP.

According to the 4th Directive of the EC,

Analysis of MNE aggregate results requires knowledge of the component parts of the following except

International trade union organizations try to get MNE transfer pricing policies.

Following the issuance of several directives in the EU, including the 4th, 7th and 8th, it appears that

According to the 4th Directive of the EU, the operational basis for the income statement means that

Major user groups

Trade unions tend to be grounded in a national territory.

The European Union and the Organization for Economic Cooperation and Development differ from each other in terms of their accounting harmonization efforts, because

The Vredeling proposals called for the regular provision of information about MNE subsidiaries.

Trade unions do not want accounting information for interfirm comparisons, but for

The IASC stated objectives are to I. formulate and publish in the public interest accounting standards II. work for the improvement and harmonization of regulations III. try to raise stock prices

Investors have problems with MNE financial statements because

Which of the following is true concerning the impact of the United Nations on accounting?

Trade unions are not one of the major participant groups influencing MNE information disclosure.

Disclosure levels vary across the world's stock markets but

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