Cross-Border Mergers and Acquisitions
Solved Exam Questions
Course Introduction
Cross-Border Mergers and Acquisitions examines the strategic, legal, financial, and cultural complexities involved when companies merge with or acquire firms in different countries. The course covers key topics such as deal structuring, due diligence, valuation techniques, regulatory considerations, negotiation tactics, post-merger integration, and the impact of national and regional differences on successful transactions. Students explore case studies and real-world examples to understand risks and opportunities, as well as the roles of various stakeholders in cross-border deals. The course prepares students to effectively analyze, execute, and manage international mergers and acquisitions in a globalized economy.
Recommended Textbook
International Accounting 5th Edition by Frederick D. S. Choi
Available Study Resources on Quizplus
12 Chapters
677 Verified Questions
677 Flashcards
Source URL: https://quizplus.com/study-set/3445 Page 2
Chapter 1: Introduction to International Accounting
Available Study Resources on Quizplus for this Chatper
57 Verified Questions
57 Flashcards
Source URL: https://quizplus.com/quiz/68428
Sample Questions
Q1) For a U.S. multinational corporation, consolidating the financial statements of foreign subsidiaries requires two steps. First, the foreign subsidiary's statements must be restated according to the U.S. GAAP. The next step is to:
A) convert the account balances into U.S. dollars.
B) determine the exchange rate gain or loss.
C) calculate the translation adjustment.
D) restate the income using international accounting standards.
Answer: A
Q2) What is a key objective of a company's performance evaluation system?
A) To determine how much to pay executives in bonuses and other compensation
B) To ensure that the domestic and foreign operations are achieving their objectives
C) To control foreign subsidiaries
D) To assess the effect of foreign exchange rates on published financial statements
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 2: Worldwide Accounting Diversity
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/68427
Sample Questions
Q1) In countries such as the U.S., there is great demand for public disclosure of accounting information. What is the reason for this?
A) Corporate management isn't trustworthy.
B) Businesses rely heavily on financing through issuance of stock to the public.
C) The American populace is better able to read financial statements than people in other countries.
D) U.S. government officials are generally members of corporate boards of directors and can get all the information they require.
Answer: B
Q2) Gray argues that national cultural values affect accounting values. If Country X ranks low on uncertainty avoidance, which of the following statements would be true?
A) The country would rank high on the accounting values of uniformity.
B) The country would rank high on the accounting values of secrecy.
C) The country would rank low on the accounting values of professionalism.
D) The country would rank low on the accounting values of conservatism.
Answer: D
To view all questions and flashcards with answers, click on the resource link above.
Chapter 3: International Convergence of Financial Reporting
Available Study Resources on Quizplus for this Chatper
55 Verified Questions
55 Flashcards
Source URL: https://quizplus.com/quiz/68426
Sample Questions
Q1) In preparation for admission to the European Union, Hungary, Poland, and the Czech Republic passed new accounting laws based on EU Directives. How were these new laws different from their previous accounting laws?
A) The new laws are easier to enforce than the previous laws.
B) The new accounting regulations are written in English, whereas the earlier accounting standards were written in Russian.
C) The new laws are less flexible than their earlier accounting laws.
D) The new laws are market-oriented whereas their earlier accounting laws were Soviet-style.
Answer: D
Q2) The IASB's Framework for Preparation and Presentation of Financial Statements (1989) implies that the most important group of users is:
A) government.
B) general public.
C) creditors.
D) investors.
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: International Financial Reporting Standards:
Part I
Available Study Resources on Quizplus for this Chatper
48 Verified Questions
48 Flashcards
Source URL: https://quizplus.com/quiz/68425
Sample Questions
Q1) Blanco Chemical Company spent 15,000,000 in development efforts to create a fertilizer for which it was able to obtain a patent; however, the expected distribution costs make it infeasible to market the chemical in the foreseeable future. According to IAS 38 (Intangible Assets), how should Blanco Chemical Company record the 15,000,000?
A) As a "Deferred Development Cost" on the Balance Sheet
B) As "Fertilizer Revenue" on the Income Statement
C) As "Development Expense" on the Income Statement
D) It should only be reported in the notes to the financial statements.
Q2) Agro-World Technologies Inc. incurred $1,000,000 to construct a pilot plant to study the feasibility of building agricultural machinery more inexpensively for emerging economies. How would this cost be classified under IAS 38 (Intangible Assets)?
A) Research costs
B) Development costs
C) Neither research nor development
D) It could be either research or development, depending on management's wishes.
To view all questions and flashcards with answers, click on the resource link above.
Page 6
Chapter 5: International Financial Reporting Standards:
Part II
Available Study Resources on Quizplus for this Chatper
51 Verified Questions
51 Flashcards
Source URL: https://quizplus.com/quiz/68424
Sample Questions
Q1) Why is it difficult to compare IFRS15/ASC606, Revenue, to U.S. GAAP?
A) The IASB definition of revenue is very complicated, whereas the definition of revenue under U.S. GAAP is straightforward.
B) Revenue is not defined under U.S. GAAP.
C) There is no single standard in U.S. GAAP that deals solely with revenue.
D) Under U.S. GAAP, revenue is defined in terms of cash, whereas IAS 18 defines revenue in terms of a variety of resources.
Q2) Which of the following is a difference between IAS 37 and U.S. GAAP with respect to restructuring provisions?
A) U.S. GAAP does not allow recognition of a restructuring provision until a liability has been incurred.
B) There is no difference between IAS 37 and U.S. GAAP with respect to restructuring provisions.
C) IAS 37 does not allow recognition of a restructuring provision until a liability has been incurred.
D) A restructuring provision and related loss is more likely to occur later under IAS 37 than under U.S. GAAP.
To view all questions and flashcards with answers, click on the resource link above.
Page 7
Chapter 6: Foreign Currency Transactions and Hedging
Foreign Exchange Risk
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/68423
Sample Questions
Q1) What term is used for an option with a positive intrinsic value?
A) Put option
B) Over the counter
C) In the money
D) Call option
Q2) The number of Japanese yen (Â¥) required today to buy one U.S. dollar ($) today is called:
A) the spot rate.
B) the exact rate.
C) the forward rate.
D) the retail rate.
Q3) What is the intrinsic value of a foreign currency option?
A) The difference between the spot rate and the strike price
B) The gain that could be realized if the option was exercised immediately
C) The chance that a currency will rise over time to make the option in the money
D) The difference between a call option and a put option
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Translation of Foreign Currency Financial Statements
Available Study Resources on Quizplus for this Chatper
57 Verified Questions
57 Flashcards
Source URL: https://quizplus.com/quiz/68422
Sample Questions
Q1) When the parent company of a foreign subsidiary believes that all of its investment in the subsidiary is exposed to foreign exchange risk, what method of translation should be used in consolidating the financial statements?
A) Current rate method
B) Current/noncurrent method
C) Monetary/nonmonetary method
D) Temporal method
Q2) What is another term for "balance sheet exposure?"
A) Transaction exposure
B) Exchange exposure
C) Translation exposure
D) Negative exposure
Q3) Under the current rate method of translating foreign currency financial statements, what is the amount of the balance sheet exposure?
A) It is equal to the amount of assets recorded by the subsidiary.
B) It is equal to the amount of liabilities recorded by the subsidiary.
C) It is equal to the foreign operation's net asset position.
D) It is equal to total assets plus total liabilities.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: International Taxation
Available Study Resources on Quizplus for this Chatper
63 Verified Questions
63 Flashcards
Source URL: https://quizplus.com/quiz/68421
Sample Questions
Q1) Under U.S. tax law, what happens to excess foreign tax credit?
A) It reduces taxes on ordinary income in the current year.
B) It can be carried back one year to calculate a refund on additional taxes paid in U.S. on foreign source income.
C) It is lost unless the average foreign tax rate paid by the company in the future is greater than the U.S. tax rate.
D) None of the above
Q2) The definition of a "permanent establishment" is a key article of the OECD's model tax treaty. Which of the following would NOT be considered a permanent establishment by the OECD?
A) Branch
B) Mine
C) Storage facility
D) Construction site
Q3) What is "Subpart F" income?
A) All foreign source income
B) Foreign income that is not taxable by foreign jurisdictions
C) Income that is easily moved to low-tax jurisdiction
D) Foreign source income that is exempt from U.S. taxation
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 9: International Transfer Pricing
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/68420
Sample Questions
Q1) The monetary amount used to record intercompany transactions is called:
A) exchange rate.
B) transfer price.
C) conversion rate.
D) incremental cost.
Q2) According to the Internal Revenue Service, the most reliable measure of an arm's-length prices for sales of tangible property in intercompany transactions is:
A) cost-plus method.
B) comparable profits method.
C) comparable uncontrolled price method.
D) resale price method.
Q3) According to a 2010 study by Ernst & Young, what percentage of MNC respondents had experienced a transfer pricing audit somewhere in the world since 2006?
A) More than 10%
B) More than 25%
C) More than 66%
D) More than 90%
To view all questions and flashcards with answers, click on the resource link above.
11
Chapter 10: Management Accounting Issues in Multinational Corporations
Available Study Resources on Quizplus for this Chatper
69 Verified Questions
69 Flashcards
Source URL: https://quizplus.com/quiz/68419
Sample Questions
Q1) If only one currency is used for evaluating subsidiary performance in a multinational corporation, what currency is it most likely to be?
A) Euros
B) Local currency of the subsidiary
C) Currency of the parent company's home country
D) None of the above
Q2) The Squeaky Division of Household Products Corporation showed a net loss of £5,000,000 last year, but Squeaky's manager received a bonus for outstanding performance. Why would Household Products' management control system appropriately allow for this apparent inconsistency?
A) Economic factors outside the manager's control caused the loss.
B) Household Products' management control system is ineffective.
C) The bonus represents a payoff to Squeaky's manager to keep her quiet about the loss.
D) The loss was due to controllable factors.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Auditing and Corporate Governance: An International Perspective
Available Study Resources on Quizplus for this Chatper
61 Verified Questions
61 Flashcards
Source URL: https://quizplus.com/quiz/68418
Sample Questions
Q1) Why has corporate financial reporting in China not resembled reporting in Anglo-Saxon countries?
A) There was a lack of distinction between business functions and social service functions in Chinese reporting entities.
B) China has only recently become involved in international trade.
C) The concept of accounting was only introduced to China recently and therefore it has not had time to develop properly.
D) The 1960's Cultural Revolution eliminated the requirements that Chinese corporations provide information on business operations.
Q2) Which of the following is a main function of internal auditing in multinational corporations?
A) Preparing the annual report to corporate shareholders
B) Selecting independent members for the board of directors
C) Helping external auditors with the financial statement audit
D) Monitoring risks and assessing their effect on the company
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: International Sustainability Reporting
Available Study Resources on Quizplus for this Chatper
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/68417
Sample Questions
Q1) ESG is an acronym for:
A) Environmentally Specific Gases
B) Environmental, Social, and Governance
C) European Sustainability Goals
D) Ecologically Safe Groundwater
Q2) The SASB's Human Capital category includes which of the following topics?
A) Data security
B) Air quality
C) Human rights and community relations
D) Fair labor practices
Q3) According to the Greenhouse Gas Protocol, which is not a Scope 3 emissions category?
A) Upstream transportation and distribution
B) Employee commuting
C) Emissions from burning coal in the company's power plant
D) End-of-life treatment of sold products
To view all questions and flashcards with answers, click on the resource link above.
Page 14