This quiz works best with JavaScript enabled. Home > Accounting > International Accounting > International Accounting – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Accounting Quiz 1 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In theory, the optimal method for establishing transfer price is A) Full cost plus a markup. B) Variable cost plus markup. C) Standard cost with a markup. D) (adjusted) market price. E) Negotiated price. Show Answer Correct Answer: D) (adjusted) market price. 2. An important concept in decision making is described as "the contribution to operating income that is foregone associated with the next best alternative" . This concept is called A) Opportunity costs. B) Irrelevant costs. C) Variable costs. D) Discretionary costs. E) Incremental costs. Show Answer Correct Answer: A) Opportunity costs. 3. In some countries, financial accounting and tax accounting are so closely related that there is very little need to account for deferred income taxes. Of the countries listed below, which has a financial accounting system that is most different from its tax laws? A) United States of America. B) Japan. C) Germany. D) France. Show Answer Correct Answer: A) United States of America. 4. What is Malaysia official national animal A) Malayan tiger. B) Panda. C) Orangutan. D) Malayan Tapir. Show Answer Correct Answer: A) Malayan tiger. 5. Which of the following is not a purpose of the framework? A) Assist in the development of IFRS Standards with consistent concepts for users of financial information. B) Assist in the development of consistent accounting policies for transactions or other events when no Standard applies. C) Is an IAS and therefore determine standards for any particular measurement or disclosure. D) Help parties understand and interpret standards. Show Answer Correct Answer: C) Is an IAS and therefore determine standards for any particular measurement or disclosure. 6. Abnormal spoilage, rework and scrap are part of A) Product costs (COGS). B) Period costs. Show Answer Correct Answer: B) Period costs. 7. What is the name of this place A) U Globe. B) You plaza. C) U center. D) None of above. Show Answer Correct Answer: A) U Globe. 8. The goals and objectives upon which an annual profit plan is based should be: A) Financial measures such as operating income, return on investment, residual income etc. B) Quantitative measures such as growth in unit sales, number of employees, manufacturing capacity, etc. C) Qualitative measures of organisational activity such as product innovation leadership, product quality levels, product safety, etc. D) A combination of financial, quantitative and qualitative measures. E) A combination of financial and customer satisfaction measures. Show Answer Correct Answer: D) A combination of financial, quantitative and qualitative measures. 9. The use of budgetary slack does not allow the preparer to A) Be flexible under unexpected circumstances. B) Makes budget targets more easily achievable. C) Increase the probability of achieving budgeted performance. D) Use the budget for evaluation purposes. E) Make sales forecasts. Show Answer Correct Answer: D) Use the budget for evaluation purposes. 10. Which is not a fundamental qualitative characteristics of useful financial information? A) Timely. B) Faithful representation. C) Relevant. D) None of above. Show Answer Correct Answer: A) Timely. 11. How many types of GAAP are there A) 1. B) 2. C) 4. D) 6. Show Answer Correct Answer: B) 2. 12. Hoyt Corporation manufactured the following units:Saleable 5, 000Unsaleable (normal spoilage) 200Unsaleable (abnormal spoilage) 300Manufacturing costs totalled $ 99, 000. What amount should Hoyt debit to finished goods? A) $ 90, 000. B) $ 93, 600. C) $ 95, 400. D) $ 98, 700. E) $ 99, 000. Show Answer Correct Answer: B) $ 93, 600. 13. Generally, in highly decentralised organisation the best option for measuring the performance of divisions (business units) is the establishment of A) Investment centers. B) Profit centers. C) Revenue centers. D) Engineered expense centers. Show Answer Correct Answer: A) Investment centers. 14. A continuous (rolling) budget A) Presents the plan for only one level of activity and does not adjust to changes in the level of activity. B) Presents the plan for a range of activity so that the plan can be adjusted for changes in activity. C) Classifies budget requests by activity and estimates the benefits arising from each activity. D) Drops the current quarter or month and adds a future quarter or month as the current quarter or month is completed. The budgeted amounts of other quarters or months are revised if necessary. E) Divides the activities of individual responsibility centers into a series of packages that are justified and prioritized. Show Answer Correct Answer: D) Drops the current quarter or month and adds a future quarter or month as the current quarter or month is completed. The budgeted amounts of other quarters or months are revised if necessary. 15. In the Nobes classification of accounting systems, micro-based accounting systems are derived from: A) Government models. B) Business models. C) Tax laws. D) Code law. Show Answer Correct Answer: B) Business models. 16. Which one of the following considers the impact of fixed factory overhead costs? A) Target costing. B) Prime costing. C) Throughput Costing. D) Absorption Costing. E) Variable Costing. Show Answer Correct Answer: D) Absorption Costing. 17. Longest river in Malaysia A) Rajang River. B) Iron River. C) Pahang River. D) Congkak River. Show Answer Correct Answer: A) Rajang River. 18. A company manufactures a speciality line of MTB-helmet using a job-order costing system. During March, the following costs wer incurred in completing Job A-1:Direct materials:$ 13, 700Direct labor:$ 5, 900Administrative:$ 1, 400Selling:$ 5, 600Overhead was applied at the rate of $ 30 per machine hour, and job A-1 required 700 machine hours. If Job A-1 resulted in 7, 000 good helmets, the cost of gods sold per unit would be: A) $ 6, 50. B) $ 6, 30. C) $ 5, 50. D) $ 5, 80. Show Answer Correct Answer: D) $ 5, 80. 19. Cost drivers are ..... A) Accounting techniques used to control costs. B) Accounting measurements used to evaluate whether or not performance is proceeding according to plan. C) E.g. machine hours, computer times, or square footage of factory, used to assign costs to activities. D) Activities that cause costs to increase or decrease as the activity increases or decreases. Show Answer Correct Answer: D) Activities that cause costs to increase or decrease as the activity increases or decreases. 20. Which country includes a social report in the notes to financial statements? A) Japan. B) Israel. C) Brazil. D) Germany. Show Answer Correct Answer: C) Brazil. Next →Related QuizzesAccounting QuizzesInternational Accounting Quiz 2International Accounting Quiz 3International Accounting Quiz 4International Accounting Quiz 5International Accounting Quiz 6International Accounting Quiz 7International Accounting Quiz 8International Accounting Quiz 9International Accounting Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books