INTERNATIONAL ACCOUNTING FINAL
EXAM 2026/2027 WITH 130 QUESTIONS
AND EXPERT-VERIFIED CORRECT
ANSWERS | ALREADY GRADED A+ |
GUARANTEED PASS | INTERNATIONAL
ACCOUNTING PRACTICE EXAM
The ownership and control of foreign assets, such as a manufacturing plant, is
called:
A. a hedge.
B. foreign direct investment.
C. an option.
D. derivatives. - ANSWER-B. foreign direct investment.
,Which of the following is an example of a "greenfield" investment?
A. Nike contracts with a footwear company in China to make athletic shoes.
B. A Chinese oil company buys a U.S. oil company.
C. Toyota, a Japanese automaker, builds an assembly plant in Ohio.
D. Daimler, a German automaker, merges with Chrysler, a U.S. automaker. -
ANSWER-C. Toyota, a Japanese automaker, builds an assembly plant in Ohio.
What is "transfer pricing?"
A. The cost to convert from one country's GAAP to another country's GAAP
B. The value of sales made in a foreign country
C. The prices established to record an intercompany sale
D. The taxes paid on sales in a foreign country - ANSWER-C. The prices
established to record an intercompany sale
ABCO Corporation has its two wholly owned subsidiaries, Delta and Parry, in
Country A and Country B, respectively. Parry purchases a part for its production
from Delta. Country B has a higher tax rate than Country A. To minimize the
corporation's overall income tax, how should ABCO set its transfer prices between
its subsidiaries?
,A. Delta should sell parts to Parry at low prices.
B. Delta should sell parts to Parry at high prices.
C. It doesn't matter what transfer price is used because the subsidiaries are part of
the same company.
D. Transfer pricing does not affect the total tax paid by the corporation. -
ANSWER-B. Delta should sell parts to Parry at high prices.
When a foreign subsidiary pays dividends to its U.S. parent, this process is known
as:
A. repatriation.
B. the reverse authoritative principle.
C. income-splitting.
D. asset management. - ANSWER-A. repatriation.
Which of the following statements is true about international transfer pricing?
A. It is a violation of the Foreign Corrupt Practices Act.
, B. It is accomplished using guidelines set up by the FASB.
C. It can be used to minimize the amount of worldwide taxes.
D. It cannot be regulated by countries. - ANSWER-C. It can be used to minimize
the amount of worldwide taxes.
The practice of having the stock listed and traded on several foreign stock
exchanges is known as:
A. SEC registration.
B. initial public offering.
C. consolidation.
D. cross-listing. - ANSWER-D. cross-listing.
Foreign companies that are listed on the New York Stock Exchange (NYSE) and
following their domestic GAAP must report their income in terms of:
A. the International Accounting Standards.
B. the GAAP of their home country.
C. the GAAP of the United States.
EXAM 2026/2027 WITH 130 QUESTIONS
AND EXPERT-VERIFIED CORRECT
ANSWERS | ALREADY GRADED A+ |
GUARANTEED PASS | INTERNATIONAL
ACCOUNTING PRACTICE EXAM
The ownership and control of foreign assets, such as a manufacturing plant, is
called:
A. a hedge.
B. foreign direct investment.
C. an option.
D. derivatives. - ANSWER-B. foreign direct investment.
,Which of the following is an example of a "greenfield" investment?
A. Nike contracts with a footwear company in China to make athletic shoes.
B. A Chinese oil company buys a U.S. oil company.
C. Toyota, a Japanese automaker, builds an assembly plant in Ohio.
D. Daimler, a German automaker, merges with Chrysler, a U.S. automaker. -
ANSWER-C. Toyota, a Japanese automaker, builds an assembly plant in Ohio.
What is "transfer pricing?"
A. The cost to convert from one country's GAAP to another country's GAAP
B. The value of sales made in a foreign country
C. The prices established to record an intercompany sale
D. The taxes paid on sales in a foreign country - ANSWER-C. The prices
established to record an intercompany sale
ABCO Corporation has its two wholly owned subsidiaries, Delta and Parry, in
Country A and Country B, respectively. Parry purchases a part for its production
from Delta. Country B has a higher tax rate than Country A. To minimize the
corporation's overall income tax, how should ABCO set its transfer prices between
its subsidiaries?
,A. Delta should sell parts to Parry at low prices.
B. Delta should sell parts to Parry at high prices.
C. It doesn't matter what transfer price is used because the subsidiaries are part of
the same company.
D. Transfer pricing does not affect the total tax paid by the corporation. -
ANSWER-B. Delta should sell parts to Parry at high prices.
When a foreign subsidiary pays dividends to its U.S. parent, this process is known
as:
A. repatriation.
B. the reverse authoritative principle.
C. income-splitting.
D. asset management. - ANSWER-A. repatriation.
Which of the following statements is true about international transfer pricing?
A. It is a violation of the Foreign Corrupt Practices Act.
, B. It is accomplished using guidelines set up by the FASB.
C. It can be used to minimize the amount of worldwide taxes.
D. It cannot be regulated by countries. - ANSWER-C. It can be used to minimize
the amount of worldwide taxes.
The practice of having the stock listed and traded on several foreign stock
exchanges is known as:
A. SEC registration.
B. initial public offering.
C. consolidation.
D. cross-listing. - ANSWER-D. cross-listing.
Foreign companies that are listed on the New York Stock Exchange (NYSE) and
following their domestic GAAP must report their income in terms of:
A. the International Accounting Standards.
B. the GAAP of their home country.
C. the GAAP of the United States.
