This quiz works best with JavaScript enabled. Home > Accounting > International Accounting > International Accounting – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Accounting Quiz 3 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In terms of level of detail provided in the individual financial statements, the U.S. tends to: A) Emphasize more line items on the face of the financial statements. B) Rely less on footnote disclosure. C) Condense the amount of line items and supplement with more footnote detail. D) Use footnotes only when absolutely required by GAAP. Show Answer Correct Answer: C) Condense the amount of line items and supplement with more footnote detail. 2. Which of the following is true about international transfer prices for a multinational firm? A) Transfer prices must be used to minimize wordlwide taxes. B) Transfer prices must be based on full costs. C) Negotiated Transfer prices are required. D) Transfer prices must be based on the arm's length principle. E) Firms are not allowed to use market prices. Show Answer Correct Answer: D) Transfer prices must be based on the arm's length principle. 3. What is the equivalent of U.S. balance sheet common stock on the balance sheet of a British company? A) Capital redemption reserve. B) Share premium account. C) Own shares held. D) Called-up share capital. Show Answer Correct Answer: D) Called-up share capital. 4. Which of the following is NOT a flag of Malaysia states A) . B) . C) . D) . Show Answer Correct Answer: A) . 5. In the planning process for a firm, which one of the following should be completed first? A) Sales budget. B) Financial budget. C) Cost management plan. D) Strategic plan (long-range plan). E) Production budget. Show Answer Correct Answer: D) Strategic plan (long-range plan). 6. When production levels are expected to decline within a relevant range, what effect would be anticipated with respect to each of the following?Variable costs per unit/Fixed costs per unit A) Increase / Increase. B) No change / Increase. C) No change/ No change. D) Increase / No change. E) Decrease / Decrease. Show Answer Correct Answer: B) No change / Increase. 7. A cultural emphasis on values of performance and achievement rather than values of relationships, caring, and nurturing is referred to as: A) Uncertainty avoidance. B) Masculinity. C) Individualism. D) Power distance. Show Answer Correct Answer: B) Masculinity. 8. Cost drivers..... A) Are activities that cause costs to increase or decrease as the activity increases or decreases. B) Accounting techniques used to control costs. C) Accounting measurements used to evaluate whether or not performance is proceeding according to plan. D) A mechanical basis, such as machine hours, computer time, size of equipment or square footage of factory, used to assign costs to activities. E) Activities of vital importance for realization of company's goal. Show Answer Correct Answer: A) Are activities that cause costs to increase or decrease as the activity increases or decreases. 9. What is the term used to describe the possibility that a foreign currency will decrease in US$ value over the life of an asset such as Accounts Receivable? A) Foreign exchange translation. B) Hedging. C) Foreign exchange risk. D) Foreign currency options. Show Answer Correct Answer: C) Foreign exchange risk. 10. What term is used to refer to the decision about whether to report an item in the financial statements? A) Capitalization. B) Recognition. C) Realization. D) Conservatism. Show Answer Correct Answer: B) Recognition. 11. From where did the accounting principles orignated A) US. B) China. C) India. D) Italy. Show Answer Correct Answer: D) Italy. 12. IFRS allows for which two methods for valuing property, plant and equipment? A) Historic cost and general purchasing power. B) Historic cost and fair value. C) Fair value and general purchasing power. D) Fair value and inflation-adjusted. Show Answer Correct Answer: B) Historic cost and fair value. 13. In some countries, financial institutions operate under Shariah, which also gives guidance about accounting practice in these institutions. What is "Shariah?" A) Shariah is the financial accounting standards board in Saudi Arabia. B) Shariah is the law governing human conduct that is derived from the Koran. C) Shariah is the codification of banking regulations in the European Union. D) Shariah is a political system used in South American countries. Show Answer Correct Answer: B) Shariah is the law governing human conduct that is derived from the Koran. 14. If the ..... is satisfied over time, then revenue is recognized based on the progress towards completion. A) Performance Asset. B) Performance Liability. C) Performance Obligation. D) All. Show Answer Correct Answer: C) Performance Obligation. 15. What are the options included in FDI? A) Investment. B) Acquisition. C) Occupy. D) All of the above. Show Answer Correct Answer: D) All of the above. 16. The generally accepted accounting principles prepared and accepted within the boundaries of a country are called as A) International GAAP. B) National GAAP. C) IFRS. D) None. Show Answer Correct Answer: B) National GAAP. 17. IFRS A) International Financial Reporting Standards. B) Indian Financial Reporting Standards. C) International Financial Reporting System. D) None. Show Answer Correct Answer: A) International Financial Reporting Standards. 18. The use of activity based costing normally results in A) Substantially greater unit costs for low volume products than is reported by traditional product costing. B) Substantially lower unit costs for low volume products than is reported by traditional product costing. C) Equalizing set-up costs for all product lines. D) Making pricing decisions more difficult. Show Answer Correct Answer: A) Substantially greater unit costs for low volume products than is reported by traditional product costing. 19. The budgeting process should be one that motivates managers and employees to work toward organisational goals. Which one of the following is LEAST likely to motivate managers? A) Setting budget targets at attainable levels. B) Partizipation by subordinates in the budgetary process. C) Having top management set the budget levels. D) Holding subordinates accountable for the items they control. E) Kaizen budgeting. Show Answer Correct Answer: C) Having top management set the budget levels. 20. Listed below is selected financial information for the Western Division of the Hinzel Company for the last year:Average working capital $ 625General and administrative expenses $ 1, 075Net sales $ 4, 000Average fixed assets $ 1, 775Cost of goods sold $ 2, 525If Hinzel treats the Western Division as an investment center for performance measurement purposes, what is the before-tax Return on Investment (ROI) for the last year? A) 16, 67%. B) 19, 79%. C) 22, 54%. D) 26, 76%. E) 10, 00%. Show Answer Correct Answer: A) 16, 67%. ← PreviousNext →Related QuizzesAccounting QuizzesInternational Accounting Quiz 1International Accounting Quiz 2International 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