This quiz works best with JavaScript enabled. Home > Finance > Accounting > International Accounting > International Accounting – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Accounting Quiz 6 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The five basic competitive forces as defined by Porter's model determines A) The long term profitability of an industry. B) The entrance barriers that potential players must face to get into the industry. C) The rivalry inside the industry. D) The strategy that a firm should follow to achieve its objectives. E) The short term profitability and competitive intensity of the industry. Show Answer Correct Answer: A) The long term profitability of an industry. 2. A cultural preference for accounting systems that rely on compliance with legal requirements is called: A) Optimism. B) Uniformity. C) Statutory control. D) Professionalism. Show Answer Correct Answer: C) Statutory control. 3. Which of the following statements about activity based costing is correct? A) ABC, as a cost allocation procedure, is only applicable in manufacturing environments. B) The implementation of ABC is more appropriate in a multi-product environment. C) ABC is a replacement procedure for and cannot be used in conjunction with a standard costing system. D) ABC is not applicable to the costing of services since it is more oriented towards the manufacturing environment. E) The implementation of ABC is more appropriate in service organisations than in manufacturing companies. Show Answer Correct Answer: B) The implementation of ABC is more appropriate in a multi-product environment. 4. What is The national flower of Malaysia A) Rafflesia flower. B) Sun Flower. C) Rose flower. D) Hibiscus. Show Answer Correct Answer: D) Hibiscus. 5. Performance Measurement and evaluation of divisions (Business units) should be based on A) Financial measures (e.g. ROI). B) Customer satisfaction measures (e.g. response time). C) Internal business processes measures (e.g. cycle time). D) Combination of A and B, but not C. E) Outcome measures (e.g. ROI) and performance drivers/leading indicators (e.g customer satisfaction ratings). Show Answer Correct Answer: E) Outcome measures (e.g. ROI) and performance drivers/leading indicators (e.g customer satisfaction ratings). 6. For the month of March 2021, investment center XY had the following operating information:Sales $ 450, 000Gross profit $ 50, 000Operating income $ 25, 000Net income (after taxes) $ 8, 000Total assets $ 500, 000Shareholders equity $ 200, 000WACC 6%Based on the above information, which one of the following statements is correct? XY has a(n) A) Residual income of $ 4, 000. B) Residual income of $ 22, 000. C) Return on investment of 1, 6%. D) Residual income of $ 5, 000. E) Return on investment 4%. Show Answer Correct Answer: D) Residual income of $ 5, 000. 7. Under Pick's job order costing system, manufacturing overhead is applied to work in process using budgeted (predetermined) annual overhead rate. During January 2020, Pick's transactions included the following:Direct materials issued to production $ 90, 000Direct labor costs $ 107, 000Indirect materials issued to production $ 8, 000Manufacturing overhead incurred $ 125, 000Manufacturing overhead allocated $ 113, 000Pick had neither beginning nor ending Work in Process inventory. What was the cost of jobs completed during January 2020? A) 443, 000. B) 302, 000. C) 330, 000. D) 322, 000. E) 310, 000. Show Answer Correct Answer: E) 310, 000. 8. What is the capital of Malaysia A) Putrajaya. B) Shah Alam. C) Kuala Lumpur. D) Subang Jaya. Show Answer Correct Answer: C) Kuala Lumpur. 9. 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. 10. 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. 11. 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. 12. 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) The population of the country. C) The strength of the country's accounting profession. D) Religious differences across countries. Show Answer Correct Answer: A) The way a country finances businesses. 13. 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. 14. 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. 15. 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. 16. Inventoriable costs (product costs) A) Include only the direct materials. B) Include only the prime costs of manufacturing a product. C) Are regarded as current assets before the products are sold. D) Include only the conversion costs of manufacturing a product. E) Are expensed when products become part of finished goods inventory. Show Answer Correct Answer: C) Are regarded as current assets before the products are sold. 17. The use of the Master Budget throughout the year as a constant comparison with actual results signifies that a master budget is a A) Zero-based budget. B) Cash budget. C) Static budget. D) Flexible budget. E) Capital budget. Show Answer Correct Answer: C) Static budget. 18. 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. 19. International Accounting is a branch of A) Marketing. B) Branding. C) Accounting. D) Corporate. Show Answer Correct Answer: C) Accounting. 20. 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. 21. 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. 22. 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. 23. The use of standard costs in the budgeting process signifies that an organisation has probably implemented a A) Static budget. B) Kaizen budget. C) Zero-base budget. D) Activity-based budget. E) Flexible budget. Show Answer Correct Answer: E) Flexible budget. 24. 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. 25. 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. 26. 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) Flexible accounting. B) Cost benefit accounting. C) Responsibility accounting. D) Activity based costing system. Show Answer Correct Answer: C) Responsibility accounting. 27. Costs that arise from periodic budgeting decisions that have no strong input-output relationship are commonly called A) Discretionary costs. B) Opportunity costs. C) Committed costs. D) Differential costs. Show Answer Correct Answer: A) Discretionary costs. 28. ..... 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. 29. A firm earning a profit can increase its Return on Investment (ROI) by A) Increasing sales revenue and operating expenses by the same dollar. B) Decreasing sales revenue and operating expenses by the same percentage. C) Increasing investment and operating expenses by the same dollar amout. D) Increasing sales revenues and operating expenses by the same percentage. Show Answer Correct Answer: D) Increasing sales revenues and operating expenses by the same percentage. 30. Generally, individual departmental rates rather than a plantwide rate for applying factory overhead would be used if A) A company wants to adopt a standard cost system. B) A company's manufacturing operations are all highly automated. C) Manufacturing overhead is the largest cost component of its production cost. D) A company's manufacturing operations are basically labor based. E) The manufactured products differ in the resources consumed from the individual departments in the plant. Show Answer Correct Answer: E) The manufactured products differ in the resources consumed from the individual departments in the plant. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesInternational Accounting Quiz 1International Accounting Quiz 2International Accounting Quiz 3International Accounting Quiz 4International Accounting Quiz 5International Accounting Quiz 7 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books