ACCT 4370 - Chapter 1 - Introduction to International Accounting Exam Q&A 100% Pass

ACCT 4370 - Chapter 1 - Introduction to

International Accounting Exam Q&A

100% Pass


What is the focus of international accounting?



What does the study of international accounting include? - ✔✔-Includes the

study of various functional areas of accounting



-Focuses on the accounting issues unique to multinational corporations

What are the 3 levels of international accounting with descriptions? - ✔✔1.

General Level

-Study of standards, guidelines and rules of accounting, auditing, and

taxation within and across countries



2. Supranational accounting

-Standards, guidelines, and rules issues by supranational organizations

such as IASN< IFAC, OECD
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, 3. Company level

-Followed by company, specifically related to international business

activities and foreign investments

What are companies usual first encounter with international business?




What are the accounting issues associated with a *sale to a foreign

customer*? - ✔✔First encounter with international business occurs as sales

to foreign customers




Credit sales are made to foreign customers who pay in their own currency

-This goes rise to *foreign exchange risk*

Suppose that on February 1, 2018, Magnum., a U.S. company, makes a

sale and ships goods to NMUK, a British customer, for £100,000 (UK).



However, it is agreed that NUMK will pay in Pound Sterling on March 2,

2018.



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