Question 1

Normally a lower current ratio indicates a better financial position,for it implies that that a company has adequate liquidity to carry out business operations.

Accepted Answer

A) True 
 B)False

Question 2

Internal auditors review all aspects of operations in search of improvement,as well as review the internal control structure to determine if they are operating as expected.

Accepted Answer

A) True 
 B)False

Question 3

Which would NOT typically be an objective of a financial statement audit?

Accepted Answer

A)  Ensuring the existence of assets and liabilities and occurrence of income and expenses 
B)  Evaluating the economy and efficiency with which scarce resources are used 
C)  Verifying that all financial statement items are properly presented 
D)  Ensuring that the auditee owns the assets and is obligated to the extent of liabilities shown 
E)  Verifying the proper valuation of assets,liabilities,income,and expenses 
A)  Ensuring the existence of assets and liabilities and occurrence of income and expenses 
B)  Evaluating the economy and efficiency with which scarce resources are used 
C)  Verifying that all financial statement items are properly presented 
D)  Ensuring that the auditee owns the assets and is obligated to the extent of liabilities shown 
E)  Verifying the proper valuation of assets,liabilities,income,and expenses

Question 4

Conducting business in a tax haven means that there are no taxes whatsoever.

Accepted Answer

A) True 
 B)False

Question 5

Of the following,which is the LOWEST level of authoritative accounting literature?

Accepted Answer

A)  Accounting textbooks 
B)  AICPA Accounting Interpretations 
C)  AICPA Issues Papers 
D)  Industry accounting practices 
E)  Interpretations issues by the FASB 
A)  Accounting textbooks 
B)  AICPA Accounting Interpretations 
C)  AICPA Issues Papers 
D)  Industry accounting practices 
E)  Interpretations issues by the FASB

Question 6

An evaluation of a company's financial statements in order to identify significant trends or relationships among the items is called a(n)_____ analysis.

Accepted Answer

A)  relative 
B)  financial statement 
C)  domestic 
D)  management accounting 
E)  accounting 
A)  relative 
B)  financial statement 
C)  domestic 
D)  management accounting 
E)  accounting

Question 7

All of the following are the highest level of the primary sources of authoritative accounting literature,EXCEPT:

Accepted Answer

A)  AICPA Accounting Interpretations 
B)  Non-superseded sections of the Accounting Research Bullentins issued by the Committee on Accounting Procedures 
C)  Statements of Financial Accounting Standards issued by FASB 
D)  Interpretations issued by the FASB 
E)  Statements and Interpretations of the Governmental Accounting Standards Board 
A)  AICPA Accounting Interpretations 
B)  Non-superseded sections of the Accounting Research Bullentins issued by the Committee on Accounting Procedures 
C)  Statements of Financial Accounting Standards issued by FASB 
D)  Interpretations issued by the FASB 
E)  Statements and Interpretations of the Governmental Accounting Standards Board

Question 8

The current ratio is calculated as current assets divided by current ________.

Accepted Answer

The answer of The current ratio is calculated as current...

Question 9

The primary external users of accounting information are governmental units,lenders,vendors,credit-rating agencies,stockholders,customers,and employees.

Accepted Answer

A) True 
 B)False

Question 10

Of the following,which is NOT true about international financial reporting standards?

Accepted Answer

A)  Board members of the IASB come from 25 countries. 
B)  The IASB is committed to developing,in the public interest,a single set of high quality,understandable,and enforceable global accounting standards. 
C)  The IASB represents more than 100 worldwide accounting and financial organizations. 
D)  Most projects require a minimum of three years from formation to standard issuance. 
E)  Each IASB Member has one vote on technical and other matters. 
A)  Board members of the IASB come from 25 countries. 
B)  The IASB is committed to developing,in the public interest,a single set of high quality,understandable,and enforceable global accounting standards. 
C)  The IASB represents more than 100 worldwide accounting and financial organizations. 
D)  Most projects require a minimum of three years from formation to standard issuance. 
E)  Each IASB Member has one vote on technical and other matters.

Question 11

Scenario - The Williams Company
Based in South Dakota,USA,the Williams Company has been in operation since 1967.It has five branches located in China,Europe,South America,Mexico,and Canada.Its exquisite product line of fine custom-made jewelry is highly desired throughout the world.This company has maintained a very healthy balance sheet.
The Williams Company is known within the industry for integrity and fair business practices.This company maintains an accounting system that is open for any stakeholder to view.It prides itself on being honest and trustworthy.The company feels it is this honesty in business practice that has led it to be a billion dollar organization.
-Which one of the following would the Williams Company expect to establish a set of international accounting standards stating how particular types of transactions and other events should be reported in financial statements?

Accepted Answer

A)  GAAP 
B)  AIS 
C)  SFAS 
D)  IFRS 
E)  NAACP 
A)  GAAP 
B)  AIS 
C)  SFAS 
D)  IFRS 
E)  NAACP

Question 12

Scenario - The Williams Company
Based in South Dakota,USA,the Williams Company has been in operation since 1967.It has five branches located in China,Europe,South America,Mexico,and Canada.Its exquisite product line of fine custom-made jewelry is highly desired throughout the world.This company has maintained a very healthy balance sheet.
The Williams Company is known within the industry for integrity and fair business practices.This company maintains an accounting system that is open for any stakeholder to view.It prides itself on being honest and trustworthy.The company feels it is this honesty in business practice that has led it to be a billion dollar organization.
-If the company's stakeholders requested to be shown a financial statement that summarized the revenues earned and the expenses incurred by the Williams Company for a given period of time,which one of the following statements would they most likely be requesting?

Accepted Answer

A)  Income statement 
B)  Cash flow statement 
C)  Retained earnings statement 
D)  Balance sheet 
E)  Trial balance sheet 
A)  Income statement 
B)  Cash flow statement 
C)  Retained earnings statement 
D)  Balance sheet 
E)  Trial balance sheet

Question 13

Liabilities + Owners' Equity = _______.

Accepted Answer

A)  Net Income 
B)  Assets 
C)  Retained Earnings 
D)  Operating Cash Flows 
E)  Total Profit 
A)  Net Income 
B)  Assets 
C)  Retained Earnings 
D)  Operating Cash Flows 
E)  Total Profit

Question 14

Scenario - The Williams Company
Based in South Dakota,USA,the Williams Company has been in operation since 1967.It has five branches located in China,Europe,South America,Mexico,and Canada.Its exquisite product line of fine custom-made jewelry is highly desired throughout the world.This company has maintained a very healthy balance sheet.
The Williams Company is known within the industry for integrity and fair business practices.This company maintains an accounting system that is open for any stakeholder to view.It prides itself on being honest and trustworthy.The company feels it is this honesty in business practice that has led it to be a billion dollar organization.
-The Williams Company places a high value on maintaining integrity in its operations.Part of ensuring this integrity is maintained involves having frequent audits of the company's accounting records performed.Which one of the following would not be considered an objective of a financial statement audit?

Accepted Answer

A)  Ensure dividends are allocated for stakeholders 
B)  Ensure all items are properly presented on the financial statements 
C)  Ensure there is proper valuation of assets 
D)  Ensure expenses are not overstated 
E)  Ensure financial statements are complete 
A)  Ensure dividends are allocated for stakeholders 
B)  Ensure all items are properly presented on the financial statements 
C)  Ensure there is proper valuation of assets 
D)  Ensure expenses are not overstated 
E)  Ensure financial statements are complete

Question 15

Because differences in culture and business environments leads to differences in the GAAP of countires,in 1970 an international GAAP was developed and is used by all countries today.

Accepted Answer

A) True 
 B)False

Question 16

_____ refers to an independent,privately funded accounting standard-setter based in London,U.K.,that issues International Financial Reporting Standards.

Accepted Answer

A)  GAAP 
B)  SFAS 
C)  IASB 
D)  IFRS 
E)  PAWS 
A)  GAAP 
B)  SFAS 
C)  IASB 
D)  IFRS 
E)  PAWS

Question 17

In the United States,an external auditor's opinion on a publicly traded company's financial statements is included in the annual report that the company files with the SEC.

Accepted Answer

A) True 
 B)False

Question 18

There are two major categories of auditing: _____ auditing and _____ auditing.

Accepted Answer

A)  management; financial 
B)  domestic; international 
C)  transactional; transformational 
D)  descriptive; evaluative 
E)  external; internal 
A)  management; financial 
B)  domestic; international 
C)  transactional; transformational 
D)  descriptive; evaluative 
E)  external; internal

Question 19

Which of the following statements is NOT true about corporate income tax rates and economic activity?

Accepted Answer

A)  The income tax is the primary sources of revenues for national governments around the world. 
B)  Before the Great Depression,state and local government expenditures in the U.S.were much lower than federal expenditures. 
C)  When state corporate income tax rates are added to federal rates,Japan has the highest combined corporate income tax rate among OECD countries. 
D)  The great majority of U.S.government expenditures are on nondefense items such as health,economic support,and education. 
E)  From 2005-2008,the average gross savings rate of OECD countries increased. 
A)  The income tax is the primary sources of revenues for national governments around the world. 
B)  Before the Great Depression,state and local government expenditures in the U.S.were much lower than federal expenditures. 
C)  When state corporate income tax rates are added to federal rates,Japan has the highest combined corporate income tax rate among OECD countries. 
D)  The great majority of U.S.government expenditures are on nondefense items such as health,economic support,and education. 
E)  From 2005-2008,the average gross savings rate of OECD countries increased.

Question 20

_____ provide the procedures for dealing with specific accounting matters.

Accepted Answer

A)  GIIP 
B)  ASEAN 
C)  CPAP 
D)  SFAS 
E)  GAAP 
A)  GIIP 
B)  ASEAN 
C)  CPAP 
D)  SFAS 
E)  GAAP

Normally a lower current ratio indicates a better financial position,for it implies that that a company has adequate liquidity to carry out business operations.

Internal auditors review all aspects of operations in search of improvement,as well as review the internal control structure to determine if they are operating as expected.

Which would NOT typically be an objective of a financial statement audit?

Conducting business in a tax haven means that there are no taxes whatsoever.

Of the following,which is the LOWEST level of authoritative accounting literature?

An evaluation of a company's financial statements in order to identify significant trends or relationships among the items is called a(n)_____ analysis.

All of the following are the highest level of the primary sources of authoritative accounting literature,EXCEPT:

The current ratio is calculated as current assets divided by current ________.

The primary external users of accounting information are governmental units,lenders,vendors,credit-rating agencies,stockholders,customers,and employees.

Of the following,which is NOT true about international financial reporting standards?

Liabilities + Owners' Equity = _______.

Because differences in culture and business environments leads to differences in the GAAP of countires,in 1970 an international GAAP was developed and is used by all countries today.

_____ refers to an independent,privately funded accounting standard-setter based in London,U.K.,that issues International Financial Reporting Standards.

In the United States,an external auditor's opinion on a publicly traded company's financial statements is included in the annual report that the company files with the SEC.

There are two major categories of auditing: _ auditing and _ auditing.

Which of the following statements is NOT true about corporate income tax rates and economic activity?

_____ provide the procedures for dealing with specific accounting matters.

The Rise of Globalization

The Evolution of International Business

Regional Economic Integration

The International Flow of Funds and Exchange Rates

The Cultural Environment of Global Business

The Legal,economic and Political Environment of Global Business

Entry Strategies in Global Business

Control of Global Business

Corruption and Ethics in Global Business

The Organization of Global Business

Global Human Resource Management

Global Marketing

Global Operations and Supply-Chain Management

Global Financial Management

Filters

Exam 15: Global Accounting and Taxation

Normally a lower current ratio indicates a better financial position,for it implies that that a company has adequate liquidity to carry out business operations.

Internal auditors review all aspects of operations in search of improvement,as well as review the internal control structure to determine if they are operating as expected.

Which would NOT typically be an objective of a financial statement audit?

Conducting business in a tax haven means that there are no taxes whatsoever.

Of the following,which is the LOWEST level of authoritative accounting literature?

An evaluation of a company's financial statements in order to identify significant trends or relationships among the items is called a(n)_____ analysis.

All of the following are the highest level of the primary sources of authoritative accounting literature,EXCEPT:

The current ratio is calculated as current assets divided by current ________.

The primary external users of accounting information are governmental units,lenders,vendors,credit-rating agencies,stockholders,customers,and employees.

Of the following,which is NOT true about international financial reporting standards?

Liabilities + Owners' Equity = _______.

Because differences in culture and business environments leads to differences in the GAAP of countires,in 1970 an international GAAP was developed and is used by all countries today.

_____ refers to an independent,privately funded accounting standard-setter based in London,U.K.,that issues International Financial Reporting Standards.

In the United States,an external auditor's opinion on a publicly traded company's financial statements is included in the annual report that the company files with the SEC.

There are two major categories of auditing: _____ auditing and _____ auditing.

Which of the following statements is NOT true about corporate income tax rates and economic activity?

_____ provide the procedures for dealing with specific accounting matters.

The Rise of Globalization

The Evolution of International Business

Regional Economic Integration

The International Flow of Funds and Exchange Rates

The Cultural Environment of Global Business

The Legal,economic and Political Environment of Global Business

Entry Strategies in Global Business

Control of Global Business

Corruption and Ethics in Global Business

The Organization of Global Business

Global Human Resource Management

Global Marketing

Global Operations and Supply-Chain Management

Global Financial Management

Filters

There are two major categories of auditing: _ auditing and _ auditing.