This quiz works best with JavaScript enabled. Home > Accounting > International Accounting > International Accounting – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Accounting Quiz 5 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Individualism, power distance, uncertainty avoidance, and masculinity are examples of: A) Accounting values. B) Ecological factors. C) Cultural dimensions. D) External forces. Show Answer Correct Answer: C) Cultural dimensions. 2. Why do we need International Accounting? A) Increase in world trade. B) Development of MNCs. C) Increase in international working capital. D) All of the above. Show Answer Correct Answer: D) All of the above. 3. In the United States, conformity between financial statement presentation and tax treatment is required only for: A) Goodwill. B) Depreciation. C) Gains or losses on securities. D) The use of the LIFO inventory cost flow assumption. Show Answer Correct Answer: D) The use of the LIFO inventory cost flow assumption. 4. 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 the above. Show Answer Correct Answer: D) All of the above. 5. Committed costs are costs that A) Result from a clearly measurable relationship between inputs and outputs. B) Management decides to incur in the current period that do not have a clear cause and effect relationship between inputs and outputs. C) Establish the present level of operation capacity and cannot be altered in the short run. D) Are responsive to management's attention. E) Were capitalized and amortized in prior periods. Show Answer Correct Answer: C) Establish the present level of operation capacity and cannot be altered in the short run. 6. Which of the following countries tends to show a relatively high preference for conservative accounting standards? A) Norway. B) United Kingdom. C) United states of America. D) Japan. Show Answer Correct Answer: D) Japan. 7. According to the research of Christopher Nobes, what is the primary determinant of the accounting systems in developing countries? A) The nature of their financing system. B) The accounting system of countries that dominate their culture. C) The size of their capital market. D) The strength of their tax code. Show Answer Correct Answer: B) The accounting system of countries that dominate their culture. 8. The extent to which hierarchy and unequal authority distribution in institutions and organizations are accepted within a culture is referred to as: A) Uncertainty avoidance. B) Masculinity. C) Individualism. D) Power distance. Show Answer Correct Answer: D) Power distance. 9. Countries such as the U.S. tend to value self-regulation of accounting. What term is used to define this subculture? A) Uniformity. B) Flexibility. C) Conservatism. D) Professionalism. Show Answer Correct Answer: D) Professionalism. 10. The conversion costs consist of A) Direct labor. B) Raw material, direct labor and indirect manufacturing costs. C) Direct labor and indirect manufacturing costs. D) Indirect manufacturing costs. Show Answer Correct Answer: C) Direct labor and indirect manufacturing costs. 11. In an Activity Based Costing system, cost reduction is accomplished by identifying and eliminating: A) Cost Drivers:noNonvalue-adding Activities:no. B) Cost Drivers:yesNonvalue-adding Activities:yes. C) Cost Drivers:noNonvalue-adding Activities:yes. D) Cost Drivers:yesNonvalue-adding Activities:no. Show Answer Correct Answer: C) Cost Drivers:noNonvalue-adding Activities:yes. 12. When is Hari Malaysia A) 31 August. B) 16 September. C) 31 December. D) 16 May. Show Answer Correct Answer: B) 16 September. 13. What does "transparency" mean in accounting? A) An emphasis on confidentiality. B) Restricted disclosure of accounting information. C) Flexibility in the application of accounting standards. D) Openness of accounting information. Show Answer Correct Answer: D) Openness of accounting information. 14. ..... states that an entity satisfies a performance obligation overtime and recognize revenue over time, if any of the following criteria are met: A) IFRS 17. B) IFRS 5. C) IFRS 16. D) None. Show Answer Correct Answer: D) None. 15. The weighted average method of process costing differs from the FIFO method of process costing in that the weighted-average method A) Requires that ending work-in-process inventory be stated in terms of equivalent units of production. B) Considers the ending work-in-process inventory only partially complete. C) Does not consider the degree of completion of beginning work-in-process inventory when computing equivalent units of production. D) Can be used under any cost-flow assumption. E) Leads to higher profits. Show Answer Correct Answer: C) Does not consider the degree of completion of beginning work-in-process inventory when computing equivalent units of production. 16. What is not in the colour in Malaysia flag A) Green. B) Blue. C) Red. D) Yellow. Show Answer Correct Answer: A) Green. 17. A cost that bears on observable and known relationship to a quantifiable activity base is a(n) A) Engineered costs. B) Fixed costs. C) Sunk costs. D) Target costs. E) Indirect costs. Show Answer Correct Answer: A) Engineered costs. 18. The basic purpose of a management control system (responsibility accounting system) is A) Budgeting. B) Goal congruence. C) Authority. D) Variance analysis. E) Income measurement. Show Answer Correct Answer: B) Goal congruence. 19. Which one of the following statements regarding the difference between a flexible budget and a static budget is true? A) A flexible budget is prepared for planning purposes, while a static budget is prepared for performance evaluation. B) A flexible budget provides cost allowances for different levels of activity, whereas a static budget provides budgeted costs for one level of activity. C) A flexible budget includes only variable costs, whereas a static budget includes only fixed costs. D) A flexible budget is established by operating management, while a static budget is determined by top management. E) A flexible budget is most cases the same as a static budget. Show Answer Correct Answer: B) A flexible budget provides cost allowances for different levels of activity, whereas a static budget provides budgeted costs for one level of activity. 20. What term is used to describe accounting standards that encourage risk-taking in financial reporting? A) Optimism. B) Conservatism. C) Professionalism. D) Transparency. Show Answer Correct Answer: A) Optimism. ← PreviousNext →Related QuizzesAccounting QuizzesInternational Accounting Quiz 1International Accounting Quiz 2International Accounting Quiz 3International Accounting Quiz 4International Accounting Quiz 6International Accounting Quiz 7International Accounting Quiz 8International Accounting Quiz 9International Accounting Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books