This quiz works best with JavaScript enabled. Home > Finance > Accounting > International Accounting > International Accounting – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Accounting Quiz 2 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A controllable expense A) Is an expected future expense, which will be different under various alternatives. B) Is an expense whose actual amount will not normally differ from the standard (budget) amount. C) Is one which is directly influenced at given level of managerial authority within a given time period. D) Is an expense which will remain semi variable in total over the relevant range in a given time period. E) Is always a discretionary cost (e.g. marketing). Show Answer Correct Answer: C) Is one which is directly influenced at given level of managerial authority within a given time period. 2. Which one of the following is LEAST likely to be an objective of a cost accounting system? A) Product costing. B) Inventory valuation for reporting purposes. C) Sales commission determination. D) Measuring cost of sales for reporting purposes. E) Measuring income and assets for reporting purposes. Show Answer Correct Answer: C) Sales commission determination. 3. The accounting standards in code law countries tend to be: A) Stated broadly without much guidance on accounting procedures. B) Very conservative. C) Formulated by organizations such as the FASB. D) Very detailed. Show Answer Correct Answer: A) Stated broadly without much guidance on accounting procedures. 4. ..... are the incremental costs to obtain a contract. In other words, these costs would not have been incurred without an effort to obtain a contract-for example, legal fees, sales commissions and similar. A) Income to obtain a contract. B) Costs to obtain a contract. C) Liabiltiies to obtain a contract. D) Asset to obtain a contract. Show Answer Correct Answer: B) Costs to obtain a contract. 5. Simpson Company manufactures and sells electric drills to the exacting specifications of various customers. During April Job 403 for the production of 1, 100 drills was completed at the following costs per unit:direct materials $ 10direct labor $ 8allocated factory overhead $ 12sum $ 30Final inspection of Job 403 disclosed 50 defective units and 100 spoiled units (normal spoilage). The defective drills were reworked at a total cost of $ 500 and the normal spoiled drills were sold to a jobber for $ 1, 500. What would be the unit cost of the good units produced on Job 403? A) $ 33. B) $ 29. C) $ 30. D) $ 28. E) $ 32. Show Answer Correct Answer: E) $ 32. 6. Budgetary slack in cost (expense) budgets can be described as A) The elimination of certain expenses to enhance budget income. B) Actual cost minus budgeted costs. C) The planned overestimation of budget expenses. D) The planned underestimation of budget expenses. Show Answer Correct Answer: C) The planned overestimation of budget expenses. 7. The term that best refers to past costs that have been incurred and are not relevant to any future decision is A) Discretionary costs. B) Incurred marginal costs. C) Underallocated indirect costs. D) Sunk costs. Show Answer Correct Answer: D) Sunk costs. 8. In which year did International Accounting Standards (IAS) come into effect? A) 1953. B) 1973. C) 2021. D) 1947. Show Answer Correct Answer: B) 1973. 9. A firm's statement of broad objectives or mission statement should accomplish all of the following EXCEPT A) Outlining specific strategies for technological development, market expansion and product differentiation. B) Defining the goal(s) of the company. C) Stating the moral and ethical principles that guide the actions of the firm. D) Providing an overall guide to those in high-level, decision making positions. E) Ambitions of the company. Show Answer Correct Answer: A) Outlining specific strategies for technological development, market expansion and product differentiation. 10. The appropriate method for the dispostion of under/overapplied factory overhead is A) To cost of goods sold only. B) To finished goods inventory only. C) Apportioned to finished goods sold and finished goods inventory. D) A miscellaneous expense. E) Depends on the significance of the amount. Show Answer Correct Answer: E) Depends on the significance of the amount. 11. 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. 12. 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. 13. 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. 14. Which of the following is NOT a flag of Malaysia states A) . B) . C) . D) . Show Answer Correct Answer: A) . 15. In the planning process for a firm, which one of the following should be completed first? A) Strategic plan (long-range plan). B) Production budget. C) Cost management plan. D) Sales budget. E) Financial budget. Show Answer Correct Answer: A) Strategic plan (long-range plan). 16. 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) Decrease / Decrease. B) Increase / Increase. C) No change/ No change. D) Increase / No change. E) No change / Increase. Show Answer Correct Answer: E) No change / Increase. 17. A cultural emphasis on values of performance and achievement rather than values of relationships, caring, and nurturing is referred to as: A) Individualism. B) Power distance. C) Masculinity. D) Uncertainty avoidance. Show Answer Correct Answer: C) Masculinity. 18. Cost drivers..... A) A mechanical basis, such as machine hours, computer time, size of equipment or square footage of factory, used to assign costs to activities. B) Accounting techniques used to control costs. C) Accounting measurements used to evaluate whether or not performance is proceeding according to plan. D) Activities of vital importance for realization of company's goal. E) Are activities that cause costs to increase or decrease as the activity increases or decreases. Show Answer Correct Answer: E) Are activities that cause costs to increase or decrease as the activity increases or decreases. 19. 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 risk. B) Foreign currency options. C) Foreign exchange translation. D) Hedging. Show Answer Correct Answer: A) Foreign exchange risk. 20. What term is used to refer to the decision about whether to report an item in the financial statements? A) Recognition. B) Realization. C) Capitalization. D) Conservatism. Show Answer Correct Answer: A) Recognition. 21. From where did the accounting principles orignated A) China. B) India. C) Italy. D) US. Show Answer Correct Answer: C) Italy. 22. 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. 23. 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. 24. 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. 25. 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. 26. 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. 27. 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. 28. 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) Holding subordinates accountable for the items they control. B) Kaizen budgeting. C) Setting budget targets at attainable levels. D) Partizipation by subordinates in the budgetary process. E) Having top management set the budget levels. Show Answer Correct Answer: E) Having top management set the budget levels. 29. 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) 26, 76%. B) 10, 00%. C) 16, 67%. D) 22, 54%. E) 19, 79%. Show Answer Correct Answer: C) 16, 67%. 30. Which one of the following is NOT an advantage of Activity-Based-Budgeting (ABB)? A) Better identification of resource needs. B) Identification of budgetary slack. C) Reduction of budgetary slack. D) Reduction of planning uncertainty. E) Linking of costs to outputs (e.g. products). Show Answer Correct Answer: D) Reduction of planning uncertainty. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesInternational Accounting Quiz 1International Accounting Quiz 3International Accounting Quiz 4International Accounting Quiz 5International Accounting Quiz 6International Accounting Quiz 7 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books