This quiz works best with JavaScript enabled. Home > Accounting > International Accounting > International Accounting – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Accounting Quiz 7 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. According to Gray's framework for accounting system development, which of the following are directly affected by ecological influences, such as geography, demography, and technology? A) Accounting values. B) Accounting systems. C) Institutional consequences. D) Cultural dimensions. Show Answer Correct Answer: D) Cultural dimensions. 2. In a decision analysis situation, which one of the following costs is generally NOT relevant to the decision? A) Avoidable costs. B) Differential costs. C) Incremental costs. D) Historical costs. E) Opportunity costs. Show Answer Correct Answer: D) Historical costs. 3. A firm develops an annual cash budget in order to A) Support the preparation of its cash flow statement for the annual report. B) Ascertain which capital expenditure projects should be deferred. C) Determine the opportunity costs of alternative sales and production strategies. D) Minimize the cost of interim financing and avoid the opportunity costs of non-invested excess cash. E) Avoid long-term solvency problems. Show Answer Correct Answer: D) Minimize the cost of interim financing and avoid the opportunity costs of non-invested excess cash. 4. What term is used to refer to a cultural aversion to ambiguous situations? A) Uncertainty avoidance. B) Masculinity. C) Power distance. D) Individualism. Show Answer Correct Answer: A) Uncertainty avoidance. 5. Which one of the following may be considered an independent item in preparation of the annual master budget? A) Ending inventory budget. B) Capital expenditure budget. C) Income statement. D) Balance sheet. E) Factory overhead budget. Show Answer Correct Answer: B) Capital expenditure budget. 6. Hedging is used to reduce which kind of risk in international accounting? A) Political risk. B) Operational risk. C) Currency conversion risk. D) None. Show Answer Correct Answer: C) Currency conversion risk. 7. In countries such as the U. S., there is great demand for public disclosure of accounting information. What is the reason for this? A) Corporate management isn't trustworthy. B) Businesses rely heavily on financing through issuance of stock to the public. C) The American populace is better able to read financial statements than people in other countries. D) U.S. government officials are generally members of corporate boards of directors and can get all the information they require. Show Answer Correct Answer: B) Businesses rely heavily on financing through issuance of stock to the public. 8. A job order cost system uses a budgeted (predetermined) fixed factory overhead rate based on expected volume and expected fixed factory overhead cost. At the end of the year, underapplied fixed factory overhead might be explained by which of the following situations?Actual volume / Actual fixed factory overhead A) Greater than expected / greater than expected. B) Greater than expected / less than expected. C) Less than expected / greater than expected. D) Less than expected / less than expected. E) As expected / less than expected. Show Answer Correct Answer: C) Less than expected / greater than expected. 9. What is the major risk associated with accounting for international sales? A) Currency conversion. B) Goods stolen. C) Goods destroyed. D) All of above. Show Answer Correct Answer: A) Currency conversion. 10. Nike is a sport clothing manufacturer that produces and sells a wide variety of men's sportswear. Each production run is guided by a work order that details the direct materials required and the sequence of processes needed to complete and package the garment. The cost tracking system most suited for Nike's manufacturing environment is A) Operation costing (mixture of Job order and process costing). B) Process costing. C) Job order costing. D) Variable costing. E) Activity-based-costing. Show Answer Correct Answer: A) Operation costing (mixture of Job order and process costing). 11. Cardinal Company needs 20.000 units of certain part to use in its production cycle. The following information is availableCosts to Cardinal to make the part:Direct materials $ 4Direct labor $ 16Variable factory overhead $ 8Fixed factory overhead applied $ 10Full Costs $ 38Costs to buy the part from the Oriole Company are $ 36If Cardinal buys the part from Oriole instead of making it, Cardinal could not use the released facilities in another manufacturing activity. 60% of the fixed factory overhead applied will continue regardless of what decision is made. In deciding wheter to make or buy the part, the total relevant costs to make the part are: A) $ 760, 000. B) $ 400, 000. C) $ 560, 000. D) $ 720, 000. E) $ 640, 000. Show Answer Correct Answer: E) $ 640, 000. 12. Which of the following does not belong to financial innovation? A) Measuring risk exposures. B) Accounting for specific hedge products. C) Identifying potential market risks. D) Development of the international tax system. Show Answer Correct Answer: D) Development of the international tax system. 13. Which one of the following best identifies a profit center? A) The Information Technology Department of a large consumer products company. B) A large division (business unit) of a listed corporation (invested capital is high/low). C) The Production Operations Department of a small job-order shop company. D) A new car sales division for a large local auto agency. E) A staff department of a large company. Show Answer Correct Answer: D) A new car sales division for a large local auto agency. 14. In a process costing system, the weighted average method A) Is most appropriate when conversion costs, inventory levels and direct materials prices fluctuate. B) Is used when accuracy in current equivalent unit costs is important. C) Is simple to use because it takes into account only period costs. D) Is not appropriate when a standard cost system is used. E) Is most appropriate when a relatively wide variety of closely related standardized products are manufactured. Show Answer Correct Answer: D) Is not appropriate when a standard cost system is used. 15. In code law countries such as Germany, France, and Japan, tax law and accounting standards tend to be: A) Unrelated. B) Very different. C) Similar. D) More confusing than those in the U.S. Show Answer Correct Answer: C) Similar. 16. Which of the following are not mamak area MSU A) Azra Forward. B) Al Ali Mago. C) Two restaurants were injured. D) Fariz Maju. Show Answer Correct Answer: D) Fariz Maju. 17. The 1993 study by Doupnik and Salter found that a cluster of Latin American countries indicated that the similarity of their accounting systems was related to: A) A common currency. B) The effect of persistent inflation. C) The colonial influence of Spain. D) The colonial influence of the United States of America. Show Answer Correct Answer: B) The effect of persistent inflation. 18. The difference between the selling price (Revenue) of a product and its total unit costs (COGS) represents the unit A) Contribution margin. B) Gross profit. C) Net profit. D) Gross profit margin ratio. Show Answer Correct Answer: B) Gross profit. 19. Prorating material (significant) over/underallocated factory overhead is necessary A) For external financial accounting and tax accounting purposes. B) To motivate managers to pay less attention to actual overhead costs. C) To encourage behaviour that will cause the build up of inventories and create "phantom" inventory profits. D) To demotivate budget personnel from determining a highly accurate allocation base. E) To demotivate managers from using Activity-based costing. Show Answer Correct Answer: A) For external financial accounting and tax accounting purposes. 20. If most of a country's business financing comes from families, banks, and the government what should we expect in terms of information disclosure to the public? A) Relatively little because the public isn't a major factor. B) A great deal of disclosure because it will be the only way for interested parties to learn about the company. C) Complete openness of accounting records. D) No disclosure at all. Show Answer Correct Answer: A) Relatively little because the public isn't a major factor. ← PreviousNext →Related QuizzesAccounting QuizzesInternational Accounting Quiz 1International Accounting Quiz 2International Accounting Quiz 3International Accounting Quiz 4International Accounting Quiz 5International Accounting Quiz 6International Accounting Quiz 8International Accounting Quiz 9International Accounting Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books