Question 1

The Foreign Corrupt Practices Act (FCPA)affects all of the following except:

Accepted Answer

A) United States companies. 
B) Foreign companies operating in the United States. 
C) Foreign companies operating solely in their home country. 
D) Affiliates and agents of a United States company or a foreign company operating in the United States. 
A) United States companies. 
B) Foreign companies operating in the United States. 
C) Foreign companies operating solely in their home country. 
D) Affiliates and agents of a United States company or a foreign company operating in the United States. C

Question 2

An increase in the exchange rate between a transaction date and the date of payment will cause the debtor to incur a loss.

Accepted Answer

A) True 
 B)False  True

Question 3

Companies may use future contracts to hedge against losses in foreign currencies.

Accepted Answer

A) True 
 B)False  True

Question 4

Prepare journal entries for the following transactions for Inter-Global Co.
October 10: Purchased merchandise on account from Le Monde,a French company,for 80,000 euros.The exchange rate was $0.82.
November 2: Paid Le Monde for the merchandise purchased on October 1.The exchange rate at this date was $0.83.
November 15: Sold merchandise to Nippon,a Japanese company for 300,000 yen on account.The rate of exchange was $0.0091.
November 20: The Japanese company paid the full amount.The exchange rate was $0.0090.
December 5: Sold merchandise to Ponti,an Italian company for $24,000.The exchange rate is $0.81.The Italian company agrees to pay in U.S.dollars.
December 18: Collected the full amount from the Italian company when the exchange rate is $0.82.

Accepted Answer

The answer of Prepare journal entries for the following transactions...

Question 5

Which of the following is true about foreign trade zones?

Accepted Answer

A) They are illegal in the United States. 
B) Goods imported into these designated U.S.areas are duty-free until they leave the zone. 
C) They have a special excise tax. 
D) They are areas outside the United States that offer special tax treatments. 
A) They are illegal in the United States. 
B) Goods imported into these designated U.S.areas are duty-free until they leave the zone. 
C) They have a special excise tax. 
D) They are areas outside the United States that offer special tax treatments.

Question 6

An international joint venture is:

Accepted Answer

A) A company owned by two or more companies from different countries. 
B) A contractual agreement between a company and a foreign party. 
C) A company that owns 100 percent of a foreign company. 
D) A company that owns more than 75 percent of a foreign company. 
A) A company owned by two or more companies from different countries. 
B) A contractual agreement between a company and a foreign party. 
C) A company that owns 100 percent of a foreign company. 
D) A company that owns more than 75 percent of a foreign company.

Question 7

[The following information applies to the questions displayed below.]
In a recent financial journal,the exchange rate between the dollar and the Japanese yen (¥)was quoted two ways:
  
-The number of Japanese yen equivalent to $40,000 on this date is (rounded to whole ¥):

Accepted Answer

A) ¥3,056,000. 
B) ¥5,235,602. 
C) ¥5,245,745. 
D) Depends upon whether the item is a receivable or a payable. 
A) ¥3,056,000. 
B) ¥5,235,602. 
C) ¥5,245,745. 
D) Depends upon whether the item is a receivable or a payable.

Question 8

[The following information applies to the questions displayed below.]
In a recent financial journal,the exchange rate between the dollar and the Japanese yen (¥)was quoted two ways:
  
-The number of dollars equivalent to ¥5,250,000 on this date is:

Accepted Answer

A) $40,110.00. 
B) $687,172.50. 
C) $87,225.50. 
D) Depends upon whether the item is a receivable or a payable. 
A) $40,110.00. 
B) $687,172.50. 
C) $87,225.50. 
D) Depends upon whether the item is a receivable or a payable.

Question 9

Importing transactions-journal entries
Striking Furs imports furs from Canada.In the space provided below,prepare journal entries to record the following events.
Dec.11,2017: Purchased furs from Capable Trappers,Ltd. ,a Canadian corporation,at a price of 25,000 Canadian dollars,due in 60 days.The current exchange rate is $0.85 U.S.dollars per Canadian dollar.(Striking uses the perpetual inventory method;debit the Inventory account. )
Dec.31,2017: Striking made a year-end adjusting entry relating to the account payable to Capable Trappers.The exchange rate at year-end is $0.89 U.S.dollars per Canadian dollar.
Feb.9,2018: Issued a check for $21,750 (U.S.dollars)to National Bank in full settlement of the liability to Capable Trappers,Ltd.The exchange rate at this date is $0.87 U.S.dollars per Canadian dollar.

Accepted Answer

The answer of Importing transactions-journal entries
Striking Furs imports furs from...

Question 10

Accounting practices are affected by all of the following except:

Accepted Answer

A) Political systems. 
B) Economic systems. 
C) Technology and infrastructure. 
D) Management knowledge of accounting practices. 
A) Political systems. 
B) Economic systems. 
C) Technology and infrastructure. 
D) Management knowledge of accounting practices.

Question 11

The Foreign Corrupt Practices Act allows Americans doing business in countries where bribes are legal to also negotiate bribes.

Accepted Answer

A) True 
 B)False

Question 12

In Japan,financial reporting requirements are based primarily on the need to provide information to:

Accepted Answer

A) Investors. 
B) Government agencies. 
C) Banks. 
D) U.S.subsidiaries of Japanese companies. 
A) Investors. 
B) Government agencies. 
C) Banks. 
D) U.S.subsidiaries of Japanese companies.

Question 13

To convert a dollar amount into a foreign currency divide the dollar amount by the exchange rate.

Accepted Answer

A) True 
 B)False

Question 14

Under the Foreign Corrupt Practices Act,American business firms are required to:

Accepted Answer

A) Refuse to transact business in countries that sanction official corruption. 
B) Report all bribery attempts to the International Monetary Fund and World Bank. 
C) Maintain an adequate system of internal control limiting access to company assets to authorized personnel. 
D) Maintain a list of all personnel employed by the company during the last 10 years. 
A) Refuse to transact business in countries that sanction official corruption. 
B) Report all bribery attempts to the International Monetary Fund and World Bank. 
C) Maintain an adequate system of internal control limiting access to company assets to authorized personnel. 
D) Maintain a list of all personnel employed by the company during the last 10 years.

Question 15

A company has a "hedged position" when it has similar amounts of accounts receivable and accounts payable in the same foreign currency.

Accepted Answer

A) True 
 B)False

Question 16

Consider the following statement: "A strong dollar rose sharply against the British pound,but fell slightly against the Japanese yen." This statement indicates that:

Accepted Answer

A) The British pound is a stronger currency than the Japanese yen. 
B) The exchange rate for the yen,stated in dollars,is rising. 
C) The exchange rate for the pound,stated in dollars,is rising. 
D) The exchange rate for the yen,stated in pounds,is falling. 
A) The British pound is a stronger currency than the Japanese yen. 
B) The exchange rate for the yen,stated in dollars,is rising. 
C) The exchange rate for the pound,stated in dollars,is rising. 
D) The exchange rate for the yen,stated in pounds,is falling.

Question 17

The price of one currency stated in terms of another currency is the:

Accepted Answer

A) Current ratio. 
B) Exchange rate. 
C) Facilitating payment. 
D) International clearing price. 
A) Current ratio. 
B) Exchange rate. 
C) Facilitating payment. 
D) International clearing price.

Question 18

Rochester,Inc.purchased cameras from a Japanese company at a price of 4 million yen.On the purchase date,the exchange rate was $0.0100 per Japanese yen,but when Rochester,Inc. ,paid the liability,the exchange rate was $0.0103 per yen.When this foreign account payable was paid,Rochester,Inc. ,recorded a:

Accepted Answer

A) Debit to Inventory of $1,200. 
B) Loss of $1,200. 
C) Credit to Accounts Payable of $41,200. 
D) Gain of $1,200. 
A) Debit to Inventory of $1,200. 
B) Loss of $1,200. 
C) Credit to Accounts Payable of $41,200. 
D) Gain of $1,200.

Question 19

The accounting profession has been slow to develop in Asian countries because of strict governmental control of accounting regulations.

Accepted Answer

A) True 
 B)False

Question 20

Canada has adopted IFRS,but Mexico and the European Union have chosen not to adopt International Financial Reporting Standards.

Accepted Answer

A) True 
 B)False

Exam 15: Global Business and Accounting

The Foreign Corrupt Practices Act (FCPA)affects all of the following except:

An increase in the exchange rate between a transaction date and the date of payment will cause the debtor to incur a loss.

Companies may use future contracts to hedge against losses in foreign currencies.

Which of the following is true about foreign trade zones?

An international joint venture is:

[The following information applies to the questions displayed below.] In a recent financial journal,the exchange rate between the dollar and the Japanese yen (¥)was quoted two ways: -The number of Japanese yen equivalent to $40,000 on this date is (rounded to whole ¥):

[The following information applies to the questions displayed below.] In a recent financial journal,the exchange rate between the dollar and the Japanese yen (¥)was quoted two ways: -The number of dollars equivalent to ¥5,250,000 on this date is:

Accounting practices are affected by all of the following except:

The Foreign Corrupt Practices Act allows Americans doing business in countries where bribes are legal to also negotiate bribes.

In Japan,financial reporting requirements are based primarily on the need to provide information to:

To convert a dollar amount into a foreign currency divide the dollar amount by the exchange rate.

Under the Foreign Corrupt Practices Act,American business firms are required to:

A company has a "hedged position" when it has similar amounts of accounts receivable and accounts payable in the same foreign currency.

Consider the following statement: "A strong dollar rose sharply against the British pound,but fell slightly against the Japanese yen." This statement indicates that:

The price of one currency stated in terms of another currency is the:

The accounting profession has been slow to develop in Asian countries because of strict governmental control of accounting regulations.

Canada has adopted IFRS,but Mexico and the European Union have chosen not to adopt International Financial Reporting Standards.

Accounting: Information for Decision Making

Basic Financial Statements

The Accounting Cycle: Capturing Economic Events

The Accounting Cycle: Accruals and Deferrals

The Accounting Cycle: Reporting Financial Results

Merchandising Activities

Financial Assets

Inventories and the Cost of Goods Sold

Plant and Intangible Assets

Liabilities

Stockholders Equity: Paid-In Capital

Income and Changes in Retained Earnings

Statement of Cash Flows

Financial Statement Analysis

Management Accounting

Job Order Cost Systems and Overhead Allocations

Process Costing

Costing and the Value Chain

Cost-Volume-Profit Analysis

Incremental Analysis

Responsibility Accounting and Transfer Pricing

Operational Budgeting

Standard Cost Systems

Rewarding Business Performance

Capital Budgeting

the Time Value of Money: Future Amounts and Present Values

Forms of Business Organization

Filters