TEST BANK FOR
International Accounting, 6th Edition by Timothy Doupnik
Chapter 1-12
✅
Answers Included
Chapter 01 6e
1) 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 future cash 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 to convert from one country's currency to another country's currency is called
the:
A) interest rate.
B) cost of capital.
C) exchange rate.
D) strike price.
1
SCHOLARVAULT
,6) What #vcis #vcthe #vcterm #vcused #vcto #vcdescribe #vcthe #vcpossibility #vcthat #vca #vcforeign #vccurrency #vcwill
#vcdecrease #vcin #vcU.S. #vcdollar #vcvalue #vcover #vcthe #vclife #vcof #vcan #vcasset #vcsuch #vcas #vcAccounts
#vcReceivable?
A) Foreign #vcexchange #vctranslation
B) Foreign #vcexchange #vcrisk
C) Hedging
D) Foreign #vccurrency #vcoptions
7) Foreign #vcexchange #vcrisk #vcarises #vcwhen:
A) business #vctransactions #vcare #vcdenominated #vcin #vcforeign #vccurrencies.
B) sales #vcare #vcmade #vcto #vccustomers #vcin #vca #vcdomestic #vccountry.
C) goods #vcor #vcservices #vcpurchased #vcfrom #vcsuppliers #vcin #vca #vcforeign #vccountry #vcare
denominated #vcin #vcdomestic #vccurrency.
#vc
D) auditing #vcreports #vcare #vcprepared #vcin #vca #vcforeign #vccurrency.
8) In #vcinternational #vcaccounting, #vca #vc"hedge" #vcis:
A) a #vcbusiness #vctransaction #vcmade #vcto #vcreduce #vcthe #vcexposure #vcof #vcforeign #vcexchange #vcrisk.
B) the #vclegal #vcbarriers #vcin #vcvarious #vcdivisions #vcof #vca #vcmultinational #vccompany.
C) the #vcloss #vcin #vcUS #vcdollar #vcresulting #vcfrom #vca #vcdecline #vcin #vcthe #vcvalue #vcof #vcthe #vcUS
dollar #vcrelative #vcto #vcforeign #vccurrencies.
#vc
D) a #vcform #vcof #vcforeign #vcdirect #vcinvestment.
9) Purchasing #vcan #vcoption #vcto #vcbuy#vcforeign #vccurrency #vcat #vca #vcpredetermined #vcexchange #vcrate
in #vcorder #vcto #vcreduce #vcexchange #vcrisk #vcis #vccalled:
#vc
A) transfer #vcpricing.
B) hedging.
C) translating.
D) cross-listing.
10) What #vcterm #vcis #vcused #vcto #vcdescribe #vcthe #vcprocess #vcof #vcreducing #vcforeign #vcexchange #vcrisk?
A) International #vcaccounting
B) Exposure
C) Hedging
D) Globalization
2
SCHOLARVAULT
,11) What #vcis #vcthe #vcadvantage #vcof #vcforeign #vcdirect #vcinvestment?
A) Helps #vcin #vcretaining #vcadvantage #vcover #vccompetition
B) Reduces #vctransportation #vccosts
C) Creates #vca #vccompany #vctailored #vcto #vca #vcforeign #vcmarket's #vcunique #vccharacteristics
D) All #vcof #vcthese #vcanswers #vcare #vccorrect.
12) How #vcshould #vcwe #vcrecognize #vcthe #vcdifference #vcin #vcthe #vcvalue #vcof #vca #vcreceivable #vcin #vca
#vcforeign #vccurrency #vcat #vcthe #vctime #vcit #vcwas #vcrecorded #vcand #vcthe #vctime #vcthe #vccash #vcwas
#vcreceived?
A) As #vcan #vcadjustment #vcto #vcstockholders' #vcequity
B) As #vcan #vcadjustment #vcto #vcpurchases
C) As #vcan #vcextraordinary #vccapital #vcexpenditure
D) As #vca #vcprior #vcperiod #vcadjustment
13) What #vccurrency #vcis #vcused #vcin #vcthe #vcUnited #vcKingdom?
A) Crown
B) Euro
C) British #vcpound
D) UK #vcdollar
14) Which #vcof #vcthese #vcEuropean #vccountries #vcdoes #vcNOT #vcuse #vcthe #vcEuro #vcas #vcits #vcdomestic
currency?
#vc
A) France
B) United #vcKingdom
C) Ireland
D) The #vcNetherlands
15) Which #vcof #vcthe #vcfollowing #vcterms #vcis #vcused #vcto #vcdescribe #vcthe #vccombining #vcof #vcthe #vcfinancial
#vcstatements #vcof #vcall #vcsubsidiaries, #vcboth #vcforeign #vcand #vcdomestic, #vcinto #vcthe #vcfinancial
#vcstatements #vcof #vcthe #vcparent?
A) Convergence
B) Hedging
C) Consolidation
D) Incorporation
3
SCHOLARVAULT
, 16) Why#vcis #vcauditing #vca #vcmultinational #vccorporation #vcpotentially#vcmore #vcdifficult #vcthan #vcauditing
an #vcentity #vcthat #vchas #vconly #vcdomestic #vcoperations?
#vc
A) Language #vcdifferences
B) Cultural #vcdifferences
C) Multiple #vcsets #vcof #vcaccounting #vcstandards
D) All #vcof #vcthese #vcanswers #vcare #vccorrect.
17) What #vcis #vcthe #vcentry#vcpoint #vcfor #vcmost #vccompanies #vcinto #vcthe #vcworld #vcof #vcinternational #vcbusiness?
A) Transfer #vcpricing
B) Exporting
C) Foreign #vcdirect #vcinvestment
D) Cross-listing #vcon #vcinternational #vcstock #vcexchanges
18) For #vca #vcU.S. #vcmultinational #vccorporation, #vcconsolidating #vcthe #vcfinancial #vcstatements #vcof
#vcforeign #vcsubsidiaries #vcrequires #vctwo #vcsteps. #vcFirst, #vcthe #vcforeign #vcsubsidiary's
#vcstatements #vcmust #vcbe #vcrestated #vcaccording #vcto #vcthe #vcU.S. #vcGAAP. #vcThe #vcnext #vcstep #vcis
#vcto:
A) convert #vcthe #vcaccount #vcbalances #vcinto #vcU.S. #vcdollars.
B) determine #vcthe #vcexchange #vcrate #vcgain #vcor #vcloss.
C) calculate #vcthe #vctranslation #vcadjustment.
D) restate #vcthe #vcincome #vcusing #vcinternational #vcaccounting #vcstandards.
19) When #vcsetting #vctransfer #vcprices #vcamong #vcinternational #vcsubsidiaries, #vcthe #vccorporation #vcmust:
A) make #vcsure #vcthat #vcthe #vctotal #vctax #vcis #vcminimized.
B) ensure #vcthat #vcthe #vctransfer #vcprices #vcare #vcacceptable #vcto #vcthe #vctaxing #vcauthorities #vcin #vcthe
countries #vcinvolved.
#vc
C) do #vcwhatever #vcit #vctakes #vcto #vcmake #vctaxes #vcpaid #vcin #vcthe #vcUnited #vcStates #vcas #vclow #vcas
#vcpossible.
D) follow #vcthe #vctransfer #vcpricing #vcpolicy #vcused #vcfor #vcdomestic #vctransfers.
20) What #vcis #vcthe #vcprimary #vcprovision #vcof #vcthe #vcForeign #vcCorrupt #vcPractices #vcAct?
A) To #vcspecify #vcwhich #vccorrupt #vcpractices #vcare #vcacceptable #vcunder #vcU.S. #vclaw
B) To #vcspecify #vchow #vcto #vcaccount #vcfor #vcbribes #vcpaid #vcby #vcU.S. #vccorporations #vcto
obtain #vcbusiness #vcfrom #vcforeign #vcgovernments
#vc
C) To #vcinform #vcinternal #vcauditors #vchow #vcto #vcdetect #vcfraud #vcin #vcmultinational #vccorporations
D) To #vcprohibit #vcU.S. #vccompanies #vcfrom #vcpaying #vcbribes #vcto #vcforeign #vcgovernment
#vcofficials #vcto #vcobtain #vcbusiness
4
SCHOLARVAULT
International Accounting, 6th Edition by Timothy Doupnik
Chapter 1-12
✅
Answers Included
Chapter 01 6e
1) 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 future cash 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 to convert from one country's currency to another country's currency is called
the:
A) interest rate.
B) cost of capital.
C) exchange rate.
D) strike price.
1
SCHOLARVAULT
,6) What #vcis #vcthe #vcterm #vcused #vcto #vcdescribe #vcthe #vcpossibility #vcthat #vca #vcforeign #vccurrency #vcwill
#vcdecrease #vcin #vcU.S. #vcdollar #vcvalue #vcover #vcthe #vclife #vcof #vcan #vcasset #vcsuch #vcas #vcAccounts
#vcReceivable?
A) Foreign #vcexchange #vctranslation
B) Foreign #vcexchange #vcrisk
C) Hedging
D) Foreign #vccurrency #vcoptions
7) Foreign #vcexchange #vcrisk #vcarises #vcwhen:
A) business #vctransactions #vcare #vcdenominated #vcin #vcforeign #vccurrencies.
B) sales #vcare #vcmade #vcto #vccustomers #vcin #vca #vcdomestic #vccountry.
C) goods #vcor #vcservices #vcpurchased #vcfrom #vcsuppliers #vcin #vca #vcforeign #vccountry #vcare
denominated #vcin #vcdomestic #vccurrency.
#vc
D) auditing #vcreports #vcare #vcprepared #vcin #vca #vcforeign #vccurrency.
8) In #vcinternational #vcaccounting, #vca #vc"hedge" #vcis:
A) a #vcbusiness #vctransaction #vcmade #vcto #vcreduce #vcthe #vcexposure #vcof #vcforeign #vcexchange #vcrisk.
B) the #vclegal #vcbarriers #vcin #vcvarious #vcdivisions #vcof #vca #vcmultinational #vccompany.
C) the #vcloss #vcin #vcUS #vcdollar #vcresulting #vcfrom #vca #vcdecline #vcin #vcthe #vcvalue #vcof #vcthe #vcUS
dollar #vcrelative #vcto #vcforeign #vccurrencies.
#vc
D) a #vcform #vcof #vcforeign #vcdirect #vcinvestment.
9) Purchasing #vcan #vcoption #vcto #vcbuy#vcforeign #vccurrency #vcat #vca #vcpredetermined #vcexchange #vcrate
in #vcorder #vcto #vcreduce #vcexchange #vcrisk #vcis #vccalled:
#vc
A) transfer #vcpricing.
B) hedging.
C) translating.
D) cross-listing.
10) What #vcterm #vcis #vcused #vcto #vcdescribe #vcthe #vcprocess #vcof #vcreducing #vcforeign #vcexchange #vcrisk?
A) International #vcaccounting
B) Exposure
C) Hedging
D) Globalization
2
SCHOLARVAULT
,11) What #vcis #vcthe #vcadvantage #vcof #vcforeign #vcdirect #vcinvestment?
A) Helps #vcin #vcretaining #vcadvantage #vcover #vccompetition
B) Reduces #vctransportation #vccosts
C) Creates #vca #vccompany #vctailored #vcto #vca #vcforeign #vcmarket's #vcunique #vccharacteristics
D) All #vcof #vcthese #vcanswers #vcare #vccorrect.
12) How #vcshould #vcwe #vcrecognize #vcthe #vcdifference #vcin #vcthe #vcvalue #vcof #vca #vcreceivable #vcin #vca
#vcforeign #vccurrency #vcat #vcthe #vctime #vcit #vcwas #vcrecorded #vcand #vcthe #vctime #vcthe #vccash #vcwas
#vcreceived?
A) As #vcan #vcadjustment #vcto #vcstockholders' #vcequity
B) As #vcan #vcadjustment #vcto #vcpurchases
C) As #vcan #vcextraordinary #vccapital #vcexpenditure
D) As #vca #vcprior #vcperiod #vcadjustment
13) What #vccurrency #vcis #vcused #vcin #vcthe #vcUnited #vcKingdom?
A) Crown
B) Euro
C) British #vcpound
D) UK #vcdollar
14) Which #vcof #vcthese #vcEuropean #vccountries #vcdoes #vcNOT #vcuse #vcthe #vcEuro #vcas #vcits #vcdomestic
currency?
#vc
A) France
B) United #vcKingdom
C) Ireland
D) The #vcNetherlands
15) Which #vcof #vcthe #vcfollowing #vcterms #vcis #vcused #vcto #vcdescribe #vcthe #vccombining #vcof #vcthe #vcfinancial
#vcstatements #vcof #vcall #vcsubsidiaries, #vcboth #vcforeign #vcand #vcdomestic, #vcinto #vcthe #vcfinancial
#vcstatements #vcof #vcthe #vcparent?
A) Convergence
B) Hedging
C) Consolidation
D) Incorporation
3
SCHOLARVAULT
, 16) Why#vcis #vcauditing #vca #vcmultinational #vccorporation #vcpotentially#vcmore #vcdifficult #vcthan #vcauditing
an #vcentity #vcthat #vchas #vconly #vcdomestic #vcoperations?
#vc
A) Language #vcdifferences
B) Cultural #vcdifferences
C) Multiple #vcsets #vcof #vcaccounting #vcstandards
D) All #vcof #vcthese #vcanswers #vcare #vccorrect.
17) What #vcis #vcthe #vcentry#vcpoint #vcfor #vcmost #vccompanies #vcinto #vcthe #vcworld #vcof #vcinternational #vcbusiness?
A) Transfer #vcpricing
B) Exporting
C) Foreign #vcdirect #vcinvestment
D) Cross-listing #vcon #vcinternational #vcstock #vcexchanges
18) For #vca #vcU.S. #vcmultinational #vccorporation, #vcconsolidating #vcthe #vcfinancial #vcstatements #vcof
#vcforeign #vcsubsidiaries #vcrequires #vctwo #vcsteps. #vcFirst, #vcthe #vcforeign #vcsubsidiary's
#vcstatements #vcmust #vcbe #vcrestated #vcaccording #vcto #vcthe #vcU.S. #vcGAAP. #vcThe #vcnext #vcstep #vcis
#vcto:
A) convert #vcthe #vcaccount #vcbalances #vcinto #vcU.S. #vcdollars.
B) determine #vcthe #vcexchange #vcrate #vcgain #vcor #vcloss.
C) calculate #vcthe #vctranslation #vcadjustment.
D) restate #vcthe #vcincome #vcusing #vcinternational #vcaccounting #vcstandards.
19) When #vcsetting #vctransfer #vcprices #vcamong #vcinternational #vcsubsidiaries, #vcthe #vccorporation #vcmust:
A) make #vcsure #vcthat #vcthe #vctotal #vctax #vcis #vcminimized.
B) ensure #vcthat #vcthe #vctransfer #vcprices #vcare #vcacceptable #vcto #vcthe #vctaxing #vcauthorities #vcin #vcthe
countries #vcinvolved.
#vc
C) do #vcwhatever #vcit #vctakes #vcto #vcmake #vctaxes #vcpaid #vcin #vcthe #vcUnited #vcStates #vcas #vclow #vcas
#vcpossible.
D) follow #vcthe #vctransfer #vcpricing #vcpolicy #vcused #vcfor #vcdomestic #vctransfers.
20) What #vcis #vcthe #vcprimary #vcprovision #vcof #vcthe #vcForeign #vcCorrupt #vcPractices #vcAct?
A) To #vcspecify #vcwhich #vccorrupt #vcpractices #vcare #vcacceptable #vcunder #vcU.S. #vclaw
B) To #vcspecify #vchow #vcto #vcaccount #vcfor #vcbribes #vcpaid #vcby #vcU.S. #vccorporations #vcto
obtain #vcbusiness #vcfrom #vcforeign #vcgovernments
#vc
C) To #vcinform #vcinternal #vcauditors #vchow #vcto #vcdetect #vcfraud #vcin #vcmultinational #vccorporations
D) To #vcprohibit #vcU.S. #vccompanies #vcfrom #vcpaying #vcbribes #vcto #vcforeign #vcgovernment
#vcofficials #vcto #vcobtain #vcbusiness
4
SCHOLARVAULT
