This quiz works best with JavaScript enabled. Home > Accounting > International Accounting > International Accounting – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Accounting Quiz 9 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Accounting means A) Rules and regulations to maintain accounts. B) System to maintain accounts. C) The process of recording accounts. D) All of above. Show Answer Correct Answer: D) All of above. 2. Which basic force(s) drive(s) industry competition and the ultimate long-term profit potential of an industry?I. Threat of new entrantsII. Bargaining power of suppliersIII. Bargaining power of buyersIV. Threat of substitutes A) I. B) I and II. C) I, II, III and IV. D) III and IV. Show Answer Correct Answer: C) I, II, III and IV. 3. According to Gray's framework for accounting system development, the counterpart to (i.e. opposite of) the value of "secrecy" is: A) Professionalism. B) Transparency. C) Optimism. D) Flexibility. Show Answer Correct Answer: B) Transparency. 4. According to the research of Christopher Nobes, the most relevant factor in determining the purpose of financial reporting is: A) The way a country finances businesses. B) Religious differences across countries. C) The population of the country. D) The strength of the country's accounting profession. Show Answer Correct Answer: A) The way a country finances businesses. 5. A successful management control system (responsibility accounting system) is dependent upon A) The correct allocation of controllable variable and fixed costs. B) Identification of the management level at which all costs are controllable. C) The proper delegation of responsibility and authority. D) A reasonable separation of costs into their fixed and variable components since fixed costs are not controllable and must be eliminated from the responsibility report. E) The Generally Accepted Accounting Principles (GAAP) of the USA. Show Answer Correct Answer: C) The proper delegation of responsibility and authority. 6. Characteristics of a responsibility accounting system include the following, EXCEPT: A) Responsibility for performance according to budget must be linked to appropriate authority. B) The system should encourage employee involvement and participation. C) Managers of expense centers are responsible for revenues as well as all common costs. D) Each level of management ist responsible for their department's operations and employees. E) Managers of a profit center are responsible for revenue and expenses. Show Answer Correct Answer: C) Managers of expense centers are responsible for revenues as well as all common costs. 7. According to the FASB's conceptual framework, the two fundamental qualitative characteristics that make accounting information useful for decision making are A) Neutrality and completeness. B) Fairness and precision. C) Relevance and faithful representation. D) Consistency and comparability. Show Answer Correct Answer: C) Relevance and faithful representation. 8. Inventoriable costs (product costs) A) Include only the prime costs of manufacturing a product. B) Include only the conversion costs of manufacturing a product. C) Are expensed when products become part of finished goods inventory. D) Are regarded as current assets before the products are sold. E) Include only the direct materials. Show Answer Correct Answer: D) Are regarded as current assets before the products are sold. 9. The use of the Master Budget throughout the year as a constant comparison with actual results signifies that a master budget is a A) Flexible budget. B) Capital budget. C) Static budget. D) Cash budget. E) Zero-based budget. Show Answer Correct Answer: C) Static budget. 10. The term "Class B Accounting" as it is used by the researcher Christopher Nobes refers to: A) Less preferred accounting systems. B) Less efficient accounting systems. C) Accounting systems that primarily serve external shareholders. D) Accounting systems that were developed primarily for creditors and taxing authorities. Show Answer Correct Answer: D) Accounting systems that were developed primarily for creditors and taxing authorities. 11. International Accounting is a branch of A) Marketing. B) Branding. C) Accounting. D) Corporate. Show Answer Correct Answer: C) Accounting. 12. Differences in legal systems used in various countries have been cited as one reason for diversity in accounting practice. What are the major types of legal systems? A) Commercial law and accounting law. B) Rules and regulations. C) Written law and unwritten law. D) Common law and code law. Show Answer Correct Answer: D) Common law and code law. 13. When comparing strategic planning with operational planning (budgeting), which one of the following statements is most appropriate? A) Strategic planning is the first phase of the management control process and performed at all levels of management. Operational planning is an option. B) Strategic planning (long-range planning) is the first phase of the management control process. Strategic planning is focused on the programs (products) of a company. Operational planning is detailed and results in budgeted data. C) Strategic planning focuses on responsibility centers at all levels in the organisation. D) Operational planning is a long-range in focus. E) Strategic planning is performed only in corporate levels. Show Answer Correct Answer: B) Strategic planning (long-range planning) is the first phase of the management control process. Strategic planning is focused on the programs (products) of a company. Operational planning is detailed and results in budgeted data. 14. Relative to accounting standards in countries such as Germany, whose accounting laws are only 47 pages long, accounting practice in the U.S. is often described as being subject to: A) Standards overload. B) Standards minimization. C) The optimal amount of accounting regulation. D) Ideal accounting standards. Show Answer Correct Answer: A) Standards overload. 15. The use of standard costs in the budgeting process signifies that an organisation has probably implemented a A) Flexible budget. B) Zero-base budget. C) Static budget. D) Kaizen budget. E) Activity-based budget. Show Answer Correct Answer: A) Flexible budget. 16. Which one of the following alternatives correctly classifies the business application to the appropriate costing systemJob Costing System/Process Costing System A) Consulting Firm / Construction Company. B) Wallpaper manufacturer / Oil refinery. C) Paint manufacturer / Investment banking. D) Aircraft assembly / Accounting firm. E) Print shop / Beverage drink manufacturer. Show Answer Correct Answer: E) Print shop / Beverage drink manufacturer. 17. The difference between variable costs and fixed costs is A) Variable costs are discretionary costs and fixed costs are sunk costs. B) Total variable costs are variable over the relevant range and fixed in the long term, while fixed costs never change. C) Variable costs per unit are fixed over the relevant range and fixed costs per unit are variable. D) Variable costs per unit fluctuate and fixed costs per unit remains constant. E) Variable costs per unit change in varying increments, while fixed costs per unit change in equal increments. Show Answer Correct Answer: C) Variable costs per unit are fixed over the relevant range and fixed costs per unit are variable. 18. The SIGNA HOLDING company uses a performance reporting system that reflects the company's decentralization of decision making. The departmental performance report shows a line of date for each subordinate who reports to the group vice-president. The data presented show the actual costs incurred during the period, the budgeted costs, and all variances from budget for that subordinate's department. The SIGNA HOLDING is using a type of system called A) Cost benefit accounting. B) Flexible accounting. C) Responsibility accounting. D) Activity based costing system. Show Answer Correct Answer: C) Responsibility accounting. 19. Costs that arise from periodic budgeting decisions that have no strong input-output relationship are commonly called A) Committed costs. B) Discretionary costs. C) Opportunity costs. D) Differential costs. Show Answer Correct Answer: B) Discretionary costs. 20. ..... is recognized at a point in time when the entity has transferred control of the promised good or service to the customer underlying the performance obligation. A) Liability. B) Asset. C) Revenue. D) All. Show Answer Correct Answer: C) Revenue. ← PreviousNext →Related QuizzesAccounting QuizzesInternational Accounting Quiz 1International Accounting Quiz 2International Accounting Quiz 3International Accounting Quiz 4International Accounting Quiz 5International Accounting Quiz 6International Accounting Quiz 7International Accounting Quiz 8International Accounting Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books