Test Bank for International Accounting, 6th Edition by Timothy
Doupnik - All Chapters ( 1-12) Newest Version 2024
Chapter 1:Introduction to International Accounting
ii
Which of the following groups is a supranational organization?
A) International Accounting Standards Board
B) Organization for Economic Cooperation and Development
C) International Federation of Accountants
D) All of these answers are correct.
2) Determination of net present value involves:
A) forecasting future profits and cash flows.
B) discounting futureiicash flows back to their present value.
C) analysis on an after-tax basis.
D) All of these answers are correct.
3) In which of the following levels can international accounting be defined?
A) Supranational organizations
B) Company
C) Country
D) All of these answers are correct.
4) Which of the following functional areas is included in the study of international accounting?
A) Financial accounting
B) Managerial
C) Taxation
D) All of these answers are correct.
5) The factor used toiiconvert from oneiicountry's currency to another country's currency is called t
he:
A) interest rate.
B) cost of capital.
C) exchange rate.
D) strike price.
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6) What isiithe term used to describe the possibility that a foreign currency will decrease in U.S.
dollar value over theiilife of an asset such as Accounts Receivable?
A) Foreign exchange translation
B) Foreign exchange risk
C) Hedging
D) Foreign currency options
7) Foreign exchange risk arises when:
A) business transactions are denominated in foreign currencies.
B) sales are made to customers in a domestic country.
C) goods or services purchased from suppliers in a foreign country are denominated iniidomestic
currency.
D) auditing reports areiiprepared in a foreign currency.
8) In international accounting, a "hedge" is:
A) a business transaction made to reduceiithe exposure of foreign exchange risk.
B) the legal barriers in various divisions of a multinational company.
C) the loss in US dollar resulting from a decline in the value of the US dollar relative to foreign c
urrencies.
D) a form of foreign direct investment.
9) Purchasing an option to buy foreign currency at a predetermined exchange rate in order to r
educe exchange risk is called:
A) transfer pricing.
B) hedging.
C) translating.
D) cross-listing.
10) What term is used to describe the process of reducing foreign exchange risk?
A) International accounting
B) Exposure
C) Hedging
D) Globalization
11) Whate,ise,thee,advantagee,ofe,foreigne,directe,investment?
A) Helpse,ine,retaininge,advantagee,overe,competition
B) Reducese,transportatione,costs
C) Createse,ae,companye,tailorede,toe,ae,foreigne,market'se,uniquee,characteristics
D) Alle,ofe,thesee,answerse,aree,correct.
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12) Howe,shoulde,wee,recognizee,thee,differencee,ine,thee,valuee,ofe,aiireceivablee,ine,ae,foreigne,currencye,at
e,te,hee,timee,ite,wase,recordede,ande,thee,timee,thee,cashe,wase,received?
A) Ase,ane,adjustmente,toe,stockholders'e,equity
B) Ase,ane,adjustmente,toe,purchases
C) Ase,ane,extraordinarye,capitale,expenditure
D) Ase,ae,priore,periode,adjustment
13) Whate,currencye,ise,usediiine,thee,UnitediiKingdom?
A) Crown
B) Euro
C) Britishe,pound
D) UKe,dollar
14) Whiche,ofe,thesee,Europeane,countriese,doese,NOTe,usee,thee,Euroe,ase,itse,domesticiicurrency?
A) France
B) Unitede,Kingdom
C) Ireland
D) Thee,Netherlands
15) Whiche,ofe,thee,followinge,termse,ise,usede,toe,describee,thee,combininge,ofe,thee,financiale,statementse,
ofe,alle,subsidiaries,e,bothe,foreigne,ande,domestic,e,intoe,thee,financiale,statementse,ofe,thee,parent?
A) Convergence
B) Hedging
C) Consolidation
D) Incorporation
16) Whye,ise,auditingiiae,multinationale,corporatione,potentiallye,moree,difficulte,thane,auditinge,ane,entitye,
te,hate,hase,onlye,domestice,operations?
A) Languagee,differences
B) Culturale,differences
C) Multipleiisetse,ofe,accountinge,standards
D) Alle,ofe,thesee,answerse,aree,correct.
17) Whate,ise,thee,entrye,pointe,fore,moste,companiese,intoe,thee,worlde,ofe,internationale,business?
A) Transfere,pricing
B) Exporting
C) Foreigne,directe,investment
D) Cross-listinge,one,internationale,stocke,exchanges
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18) Fore,ae,U.S.e,multinationale,corporation,e,consolidatinge,thee,financiale,statementse,ofe,foreig
ne,subsidiariese,requirese,twoe,steps.e,First,e,thee,foreigne,subsidiary'se,statementse,muste,bee,rest
atede,accordinge,toe,thee,U.S.e,GAAP.e,Thee,nextiistepe,ise,to:
A) converte,thee,accounte,balancese,intoe,U.S.e,dollars.
B) determinee,thee,exchangee,ratee,gaine,ore,loss.
C) calculatee,thee,translatione,adjustment.
D) restatee,thee,incomee,usingiiinternationale,accountinge,standards.
19) Whene,settinge,transfere,pricese,amonge,internationale,subsidiaries,e,thee,corporatione,must:
A) makee,sureiithate,thee,totale,taxe,ise,minimized.
B) ensuree,thate,thee,transfere,pricese,aree,acceptablee,toe,theiitaxinge,authoritiese,ine,thee,countriese
,ie,nvolved.
C) doe,whatevere,ite,takese,toe,makee,taxese,paide,ine,thee,Unitede,Statese,ase,lowe,ase,possible.
D) followe,thee,transfere,pricinge,policye,usede,fore,domestice,transfers.
20) Whate,ise,thee,primarye,provisione,ofe,theiiForeigne,Corrupte,Practicese,Act?
A) Toe,specifye,whiche,corrupte,practicese,areiiacceptablee,undere,U.S.e,law
B) Toe,specifye,howe,toe,accounte,fore,bribese,paide,bye,U.S.e,corporationse,toe,obtainiibusinesse,frome,
fe,oreigne,governments
C) Toe,informe,internale,auditorse,howe,toe,detecte,fraude,ine,multinationale,corporations
D) Toe,prohibite,U.S.e,companiese,frome,payinge,bribese,toe,foreigne,governmente,officialse,toe,obtai
niie , business
21) Whate,ise,ae,keye,objectivee,ofe,ae,company'se,performancee,evaluatione,system?
A) Toe,determineiihowe,muche,toe,paye,executivese,ine,bonusese,ande,othere,compensation
B) Toe,ensuree,thate,thee,domestice,ande,foreigne,operationse,aree,achievinge,theire,objectives
C) Toe,controle,foreigne,subsidiaries
D) Toe,assesse,thee,effecte,ofe,foreigne,exchangee,ratese,one,publishede,financiale,statements
22) Whate,ise,thee,primarye,rolee,ofe,internale,auditinge,ine,ae,multinationale,corporation?
A) Toe,assiste,thee,externale,auditorse,ine,completinge,thee,financiale,statemente,audite,ine,ae,timelye,fashion
B) Toe,makee,sureiithate,employeese,complye,withe,locale,customse,andiitraditions
C) Toe,ensuree,thate,corporatee,policiese,ande,procedurese,aree,beinge,followede,ande,toe,assesse,operatinge,
ee,fficiency
D) Toe,preparee,thee,consolidatede,financiale,statemente,ofe,thee,corporatione,ine,complianceiiwithe
,ie,nternationale,accountinge,standards
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Doupnik - All Chapters ( 1-12) Newest Version 2024
Chapter 1:Introduction to International Accounting
ii
Which of the following groups is a supranational organization?
A) International Accounting Standards Board
B) Organization for Economic Cooperation and Development
C) International Federation of Accountants
D) All of these answers are correct.
2) Determination of net present value involves:
A) forecasting future profits and cash flows.
B) discounting futureiicash flows back to their present value.
C) analysis on an after-tax basis.
D) All of these answers are correct.
3) In which of the following levels can international accounting be defined?
A) Supranational organizations
B) Company
C) Country
D) All of these answers are correct.
4) Which of the following functional areas is included in the study of international accounting?
A) Financial accounting
B) Managerial
C) Taxation
D) All of these answers are correct.
5) The factor used toiiconvert from oneiicountry's currency to another country's currency is called t
he:
A) interest rate.
B) cost of capital.
C) exchange rate.
D) strike price.
TestBank A++
PAGE 1
,Created By : TestsBanks
6) What isiithe term used to describe the possibility that a foreign currency will decrease in U.S.
dollar value over theiilife of an asset such as Accounts Receivable?
A) Foreign exchange translation
B) Foreign exchange risk
C) Hedging
D) Foreign currency options
7) Foreign exchange risk arises when:
A) business transactions are denominated in foreign currencies.
B) sales are made to customers in a domestic country.
C) goods or services purchased from suppliers in a foreign country are denominated iniidomestic
currency.
D) auditing reports areiiprepared in a foreign currency.
8) In international accounting, a "hedge" is:
A) a business transaction made to reduceiithe exposure of foreign exchange risk.
B) the legal barriers in various divisions of a multinational company.
C) the loss in US dollar resulting from a decline in the value of the US dollar relative to foreign c
urrencies.
D) a form of foreign direct investment.
9) Purchasing an option to buy foreign currency at a predetermined exchange rate in order to r
educe exchange risk is called:
A) transfer pricing.
B) hedging.
C) translating.
D) cross-listing.
10) What term is used to describe the process of reducing foreign exchange risk?
A) International accounting
B) Exposure
C) Hedging
D) Globalization
11) Whate,ise,thee,advantagee,ofe,foreigne,directe,investment?
A) Helpse,ine,retaininge,advantagee,overe,competition
B) Reducese,transportatione,costs
C) Createse,ae,companye,tailorede,toe,ae,foreigne,market'se,uniquee,characteristics
D) Alle,ofe,thesee,answerse,aree,correct.
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+ PAGEe,2
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12) Howe,shoulde,wee,recognizee,thee,differencee,ine,thee,valuee,ofe,aiireceivablee,ine,ae,foreigne,currencye,at
e,te,hee,timee,ite,wase,recordede,ande,thee,timee,thee,cashe,wase,received?
A) Ase,ane,adjustmente,toe,stockholders'e,equity
B) Ase,ane,adjustmente,toe,purchases
C) Ase,ane,extraordinarye,capitale,expenditure
D) Ase,ae,priore,periode,adjustment
13) Whate,currencye,ise,usediiine,thee,UnitediiKingdom?
A) Crown
B) Euro
C) Britishe,pound
D) UKe,dollar
14) Whiche,ofe,thesee,Europeane,countriese,doese,NOTe,usee,thee,Euroe,ase,itse,domesticiicurrency?
A) France
B) Unitede,Kingdom
C) Ireland
D) Thee,Netherlands
15) Whiche,ofe,thee,followinge,termse,ise,usede,toe,describee,thee,combininge,ofe,thee,financiale,statementse,
ofe,alle,subsidiaries,e,bothe,foreigne,ande,domestic,e,intoe,thee,financiale,statementse,ofe,thee,parent?
A) Convergence
B) Hedging
C) Consolidation
D) Incorporation
16) Whye,ise,auditingiiae,multinationale,corporatione,potentiallye,moree,difficulte,thane,auditinge,ane,entitye,
te,hate,hase,onlye,domestice,operations?
A) Languagee,differences
B) Culturale,differences
C) Multipleiisetse,ofe,accountinge,standards
D) Alle,ofe,thesee,answerse,aree,correct.
17) Whate,ise,thee,entrye,pointe,fore,moste,companiese,intoe,thee,worlde,ofe,internationale,business?
A) Transfere,pricing
B) Exporting
C) Foreigne,directe,investment
D) Cross-listinge,one,internationale,stocke,exchanges
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18) Fore,ae,U.S.e,multinationale,corporation,e,consolidatinge,thee,financiale,statementse,ofe,foreig
ne,subsidiariese,requirese,twoe,steps.e,First,e,thee,foreigne,subsidiary'se,statementse,muste,bee,rest
atede,accordinge,toe,thee,U.S.e,GAAP.e,Thee,nextiistepe,ise,to:
A) converte,thee,accounte,balancese,intoe,U.S.e,dollars.
B) determinee,thee,exchangee,ratee,gaine,ore,loss.
C) calculatee,thee,translatione,adjustment.
D) restatee,thee,incomee,usingiiinternationale,accountinge,standards.
19) Whene,settinge,transfere,pricese,amonge,internationale,subsidiaries,e,thee,corporatione,must:
A) makee,sureiithate,thee,totale,taxe,ise,minimized.
B) ensuree,thate,thee,transfere,pricese,aree,acceptablee,toe,theiitaxinge,authoritiese,ine,thee,countriese
,ie,nvolved.
C) doe,whatevere,ite,takese,toe,makee,taxese,paide,ine,thee,Unitede,Statese,ase,lowe,ase,possible.
D) followe,thee,transfere,pricinge,policye,usede,fore,domestice,transfers.
20) Whate,ise,thee,primarye,provisione,ofe,theiiForeigne,Corrupte,Practicese,Act?
A) Toe,specifye,whiche,corrupte,practicese,areiiacceptablee,undere,U.S.e,law
B) Toe,specifye,howe,toe,accounte,fore,bribese,paide,bye,U.S.e,corporationse,toe,obtainiibusinesse,frome,
fe,oreigne,governments
C) Toe,informe,internale,auditorse,howe,toe,detecte,fraude,ine,multinationale,corporations
D) Toe,prohibite,U.S.e,companiese,frome,payinge,bribese,toe,foreigne,governmente,officialse,toe,obtai
niie , business
21) Whate,ise,ae,keye,objectivee,ofe,ae,company'se,performancee,evaluatione,system?
A) Toe,determineiihowe,muche,toe,paye,executivese,ine,bonusese,ande,othere,compensation
B) Toe,ensuree,thate,thee,domestice,ande,foreigne,operationse,aree,achievinge,theire,objectives
C) Toe,controle,foreigne,subsidiaries
D) Toe,assesse,thee,effecte,ofe,foreigne,exchangee,ratese,one,publishede,financiale,statements
22) Whate,ise,thee,primarye,rolee,ofe,internale,auditinge,ine,ae,multinationale,corporation?
A) Toe,assiste,thee,externale,auditorse,ine,completinge,thee,financiale,statemente,audite,ine,ae,timelye,fashion
B) Toe,makee,sureiithate,employeese,complye,withe,locale,customse,andiitraditions
C) Toe,ensuree,thate,corporatee,policiese,ande,procedurese,aree,beinge,followede,ande,toe,assesse,operatinge,
ee,fficiency
D) Toe,preparee,thee,consolidatede,financiale,statemente,ofe,thee,corporatione,ine,complianceiiwithe
,ie,nternationale,accountinge,standards
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