This quiz works best with JavaScript enabled. Home > Finance > Accounting > International Accounting > International Accounting – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Accounting Quiz 1 (30 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) Incremental costs. B) Variable costs. C) Opportunity costs. D) Discretionary costs. E) Irrelevant costs. Show Answer Correct Answer: C) 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) Japan. B) Germany. C) France. D) United States of America. Show Answer Correct Answer: D) 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) Period costs. B) Product costs (COGS). Show Answer Correct Answer: A) 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) Use the budget for evaluation purposes. C) Make sales forecasts. D) Increase the probability of achieving budgeted performance. E) Makes budget targets more easily achievable. Show Answer Correct Answer: B) 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) 4. C) 2. D) 6. Show Answer Correct Answer: C) 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) $ 93, 600. B) $ 95, 400. C) $ 90, 000. D) $ 98, 700. E) $ 99, 000. Show Answer Correct Answer: A) $ 93, 600. 13. Generally, in highly decentralised organisation the best option for measuring the performance of divisions (business units) is the establishment of A) Engineered expense centers. B) Revenue centers. C) Profit centers. D) Investment centers. Show Answer Correct Answer: D) 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) Code law. B) Government models. C) Business models. D) Tax laws. Show Answer Correct Answer: C) Business models. 16. Which one of the following considers the impact of fixed factory overhead costs? A) Throughput Costing. B) Prime costing. C) Absorption Costing. D) Variable Costing. E) Target costing. Show Answer Correct Answer: C) Absorption Costing. 17. Longest river in Malaysia A) Rajang River. B) Pahang River. C) Iron 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) $ 5, 50. B) $ 5, 80. C) $ 6, 50. D) $ 6, 30. Show Answer Correct Answer: B) $ 5, 80. 19. Cost drivers are ..... A) Accounting techniques used to control costs. B) E.g. machine hours, computer times, or square footage of factory, used to assign costs to activities. C) Accounting measurements used to evaluate whether or not performance is proceeding according to plan. 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) Germany. B) Brazil. C) Israel. D) Japan. Show Answer Correct Answer: B) Brazil. 21. Historical cost is the primary basis for asset valuation under U.S. GAAP. Why is historical cost NOT as important in the accounting systems of Latin America as in the U.S.? A) Historical costs are too difficult to calculate in the currencies used in Central and South America. B) The countries of Latin America have experienced very high rates of inflation, which would make historical costs meaningless to readers of financial statements. C) There is very little foreign direct investment in the countries of Latin America, so few assets need to be accounted for. D) In Latin America, asset prices are very stable, making historical costs equal to replacement costs, so it doesn't matter which valuation basis is used. Show Answer Correct Answer: B) The countries of Latin America have experienced very high rates of inflation, which would make historical costs meaningless to readers of financial statements. 22. All of the following are characteristics of the strategic planning process EXCEPT the A) Emphasis on long run. B) Analysis and review of departmental budgets. C) Review of attributes and behaviour of the organisation's competition. D) Analysis of external economic factors. E) Analysis of competitor's strength. Show Answer Correct Answer: B) Analysis and review of departmental budgets. 23. What is the normal effect on the numbers of cost pools and allocation bases when an Activity-Based Costing system replaces a traditional cost system?Cost Pools / Allocation Bases A) Increase/increase. B) Increase/decrease. C) Increase/no effect. D) No effect/increase. E) No effect/no effect. Show Answer Correct Answer: A) Increase/increase. 24. When is the International Accounting day A) Nov 10. B) Oct 10. C) Sept 10. D) Dec 10. Show Answer Correct Answer: A) Nov 10. 25. At present, there is no resistance to the development of international accounting A) T. B) F. Show Answer Correct Answer: B) F. 26. Indian Accounting Standard used converge option to comply with IFRS A) True. B) False. Show Answer Correct Answer: A) True. 27. Until 2008 Mexico used which of the following bases for fixed asset valuation? A) Current replacement cost. B) Et realizable value. C) Historical cost. D) Historical cost later restated in terms of GPP. Show Answer Correct Answer: D) Historical cost later restated in terms of GPP. 28. Activity Based Costing can be part of a Operating Costing System / Job Costing System A) No/Yes. B) Yes/Yes. C) No no. D) Yes/No. Show Answer Correct Answer: B) Yes/Yes. 29. What method of fixed asset valuation would most likely be used in countries that regularly experience high rates of inflation? A) Fair value. B) Historical cost. C) Net realizable value. D) Market value. Show Answer Correct Answer: B) Historical cost. 30. When budgets are used for performance evaluations and to set limits on spending, the process will often result in departments adding something "extra" to insure the budgets will be met. This "extra" ist A) Net income. B) Budgetary slack. C) Added value. D) Contribution margin. E) Gross profit. Show Answer Correct Answer: B) Budgetary slack. Next →Related QuizzesAccounting QuizzesFinance QuizzesInternational Accounting Quiz 2International Accounting Quiz 3International Accounting Quiz 4International Accounting Quiz 5International Accounting Quiz 6International Accounting Quiz 7 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books