Question 1

Which of the following factors has not influenced the development of accounting practices in various nations?

Accepted Answer

A)  the political environment
B)  economic development
C)  cultural background
D)  all of these factors have influenced the development of accounting practicesE) None of the above
F) A) and D)

Question 2

RWB Corporation, a U. S. based company, sold inventory to a German company on June 5 for 12,000 euros, when $1 was equal to 1.20 euros. The company received 12,000 euros in payment on August 4 when $1 was equal to 1.25 euros. RWB's measurement currency is the U. S. dollar. RWB Corporation:

Accepted Answer

A)  should record the sale for $9,600.
B)  is exposed to an economic loss on the transaction.
C)  has an economic gain on the transaction.
D)  should record the sale for 12,000 euros.E) B) and C)
F) A) and B)

Question 3

Describe the complexities stemming from U. S.-based companies operating in an international environment.

Accepted Answer

1. Risk associated with settling accounts in currency other than U. S. dollars.
2. Translation to financial statements prepared in a foreign currency.
3. Differences in national accounting standards.
4. Social, language, legal, taxation and cultural differences.

Question 4

The process of expressing a subsidiary's financial statement amounts denominated in a foreign currency into amounts measured in the reporting currency of its parent company is referred to as:

Accepted Answer

A)  redenomination of financial statements.
B)  foreign currency translation.
C)  currency consolidation.
D)  foreign currency transaction.E) None of the above
F) A) and C)

Question 5

Which of the following is not a responsibility of the International Accounting Standards Board (IASB) ?

Accepted Answer

A)  To advise political bodies to enact legislation regulating international business.
B)  To establish a single set of international financial reporting standards.
C)  To achieve convergence of national accounting standards and IFRS.
D)  All are objectives of the IASB.E) All of the above
F) A) and C) A

Question 6

Which of the following is true regarding the Securities and Exchange Commission requirements from foreign companies seeking to sell securities on U.S. stock markets?

Accepted Answer

A)  The companies must reconcile their financial statements to U.S. GAAP.
B)  The companies must reconcile their financial statements to U.S. tax regulations.
C)  The companies must provide financial statements prepared according to U.S. GAAP.
D)  The companies may file financial statements prepared in accordance with IFRS without reconciliations to U.S. GAAP.E) A) and D)
F) All of the above

Question 7

A U.S. company purchases medical lab equipment from a Japanese company. The Japanese company requires payment in Japanese yen. In this transaction, the yen would be referred to as the ___________ currency.

Accepted Answer

A)  measurement
B)  denominated
C)  purchasing
D)  sellingE) None of the above
F) All of the above B

Question 8

RWB Corporation, a U. S. based company, bought inventory from a German company on June 5 for 12,000 euros, when $1 was equal to 1.20 euros. The company settled its payable with 12,000 euros on August 4 when $1 was equal to 1.25 euros. RWB's measurement currency is the U. S. dollar. RWB Corporation:

Accepted Answer

A)  should record the inventory for $9,600.
B)  is exposed to an economic loss on the transaction.
C)  has an economic gain on the transaction.
D)  should record the inventory for 12,000 euros.E) A) and B)
F) A) and C)

Question 9

Describe the concept of convergence as it pertains to the FASB and IASB and describe the ways in which this may be accomplished.

Accepted Answer

Convergence means that the FASB and IASB...

Question 10

One of the challenges facing U. S. companies adopting IFRS is:

Accepted Answer

A)  the costs incurred to do so.
B)  the subjectivity introduced into financial reporting.
C)  certain areas exist where convergence may not be achieved.
D)  All of the above.E) None of the above
F) C) and D)

Question 11

Explain the goal of harmonization of accounting standards. Why is this so important to multinational companies?

Accepted Answer

Comparability of financial information i...

Question 12

Explain the factors which have lead to the differences in accounting standards among nations.

Accepted Answer

1. Social and cultural values
2. Politic...

Question 13

Translation of a foreign entity's financial statements into the reporting currency of a domestic entity is typically done

Accepted Answer

A)  to determine if the foreign entity is properly applying IFRS.
B)  because the domestic entity has economic losses due to transactions denominated in the foreign entity's currency.
C)  to enable a parent company to include its foreign subsidiary's financial statements in its consolidation.
D)  to determine if the foreign entity is more profitable than the domestic entity.E) A) and B)
F) All of the above

Question 14

A U.S. company purchases medical lab equipment from a Japanese company. The Japanese company requires payment in Japanese yen. In this transaction, the dollar would be referred to as the ___________ currency.

Accepted Answer

A)  measurement
B)  denominated
C)  purchasing
D)  sellingE) A) and B)
F) A) and C)

Exam 9: The International Accounting Environment

Which of the following factors has not influenced the development of accounting practices in various nations?

Correct Answer
verified

RWB Corporation, a U. S. based company, sold inventory to a German company on June 5 for 12,000 euros, when $1 was equal to 1.20 euros. The company received 12,000 euros in payment on August 4 when $1 was equal to 1.25 euros. RWB's measurement currency is the U. S. dollar. RWB Corporation:

Correct Answer
verified

Describe the complexities stemming from U. S.-based companies operating in an international environment.

Correct Answer
verified
1. Risk associated with settling accounts in currency other than U. S. dollars. 2. Translation to financial statements prepared in a foreign currency. 3. Differences in national accounting standards. 4. Social, language, legal, taxation and cultural differences.

The process of expressing a subsidiary's financial statement amounts denominated in a foreign currency into amounts measured in the reporting currency of its parent company is referred to as:

Correct Answer
verified

Which of the following is not a responsibility of the International Accounting Standards Board (IASB) ?

Correct Answer
verified
A

Which of the following is true regarding the Securities and Exchange Commission requirements from foreign companies seeking to sell securities on U.S. stock markets?

Correct Answer
verified

A U.S. company purchases medical lab equipment from a Japanese company. The Japanese company requires payment in Japanese yen. In this transaction, the yen would be referred to as the ___________ currency.

Correct Answer
verified
B

RWB Corporation, a U. S. based company, bought inventory from a German company on June 5 for 12,000 euros, when $1 was equal to 1.20 euros. The company settled its payable with 12,000 euros on August 4 when $1 was equal to 1.25 euros. RWB's measurement currency is the U. S. dollar. RWB Corporation:

Correct Answer
verified

Describe the concept of convergence as it pertains to the FASB and IASB and describe the ways in which this may be accomplished.

Correct Answer
verified
Convergence means that the FASB and IASB...
View Answer

One of the challenges facing U. S. companies adopting IFRS is:

Correct Answer
verified

Explain the goal of harmonization of accounting standards. Why is this so important to multinational companies?

Correct Answer
verified
Comparability of financial information i...
View Answer

Explain the factors which have lead to the differences in accounting standards among nations.

Correct Answer
verified
1. Social and cultural values
2. Politic...
View Answer

Translation of a foreign entity's financial statements into the reporting currency of a domestic entity is typically done

Correct Answer
verified

A U.S. company purchases medical lab equipment from a Japanese company. The Japanese company requires payment in Japanese yen. In this transaction, the dollar would be referred to as the ___________ currency.

Correct Answer
verified

Exam 9: The International Accounting Environment

Which of the following factors has not influenced the development of accounting practices in various nations?

Correct AnswerverifiedShow Answer

RWB Corporation, a U. S. based company, sold inventory to a German company on June 5 for 12,000 euros, when $1 was equal to 1.20 euros. The company received 12,000 euros in payment on August 4 when $1 was equal to 1.25 euros. RWB's measurement currency is the U. S. dollar. RWB Corporation:

Correct AnswerverifiedShow Answer

Describe the complexities stemming from U. S.-based companies operating in an international environment.

Correct Answerverified1. Risk associated with settling accounts in currency other than U. S. dollars. 2. Translation to financial statements prepared in a foreign currency. 3. Differences in national accounting standards. 4. Social, language, legal, taxation and cultural differences.

The process of expressing a subsidiary's financial statement amounts denominated in a foreign currency into amounts measured in the reporting currency of its parent company is referred to as:

Correct AnswerverifiedShow Answer

Which of the following is not a responsibility of the International Accounting Standards Board (IASB) ?

Correct AnswerverifiedA

Which of the following is true regarding the Securities and Exchange Commission requirements from foreign companies seeking to sell securities on U.S. stock markets?

Correct AnswerverifiedShow Answer

A U.S. company purchases medical lab equipment from a Japanese company. The Japanese company requires payment in Japanese yen. In this transaction, the yen would be referred to as the ___________ currency.

Correct AnswerverifiedB

RWB Corporation, a U. S. based company, bought inventory from a German company on June 5 for 12,000 euros, when $1 was equal to 1.20 euros. The company settled its payable with 12,000 euros on August 4 when $1 was equal to 1.25 euros. RWB's measurement currency is the U. S. dollar. RWB Corporation:

Correct AnswerverifiedShow Answer

Describe the concept of convergence as it pertains to the FASB and IASB and describe the ways in which this may be accomplished.

Correct AnswerverifiedConvergence means that the FASB and IASB...View AnswerShow Answer

One of the challenges facing U. S. companies adopting IFRS is:

Correct AnswerverifiedShow Answer

Explain the goal of harmonization of accounting standards. Why is this so important to multinational companies?

Correct AnswerverifiedComparability of financial information i...View AnswerShow Answer

Explain the factors which have lead to the differences in accounting standards among nations.

Correct Answerverified1. Social and cultural values2. Politic...View AnswerShow Answer

Translation of a foreign entity's financial statements into the reporting currency of a domestic entity is typically done

Correct AnswerverifiedShow Answer

A U.S. company purchases medical lab equipment from a Japanese company. The Japanese company requires payment in Japanese yen. In this transaction, the dollar would be referred to as the ___________ currency.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
1. Risk associated with settling accounts in currency other than U. S. dollars. 2. Translation to financial statements prepared in a foreign currency. 3. Differences in national accounting standards. 4. Social, language, legal, taxation and cultural differences.

Correct Answer
verified

Correct Answer
verified
A

Correct Answer
verified

Correct Answer
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B

Correct Answer
verified

Correct Answer
verified
Convergence means that the FASB and IASB...
View Answer

Correct Answer
verified

Correct Answer
verified
Comparability of financial information i...
View Answer

Correct Answer
verified
1. Social and cultural values
2. Politic...
View Answer

Correct Answer
verified

Correct Answer
verified