International Accounting Final Exam
Questions
Course Introduction
International Accounting examines the principles, standards, and practices of accounting as they apply in a global context, focusing on the differences and harmonization efforts between various national accounting systems. The course explores topics such as International Financial Reporting Standards (IFRS), comparative accounting, foreign currency transactions, global tax implications, and the impact of cultural, legal, and economic environments on financial reporting. Students will develop an understanding of the challenges and strategies involved in cross-border financial statement analysis, multinational company consolidation, and international financial disclosure requirements.
Recommended Textbook
Financial Accounting and Reporting A Global Perspective 5th Edition by Herv Stolowy
Available Study Resources on Quizplus
18 Chapters
423 Verified Questions
423 Flashcards
Source URL: https://quizplus.com/study-set/3739
Page 2
Chapter 1: Accounting: the Language of Business
Available Study Resources on Quizplus for this Chatper
27 Verified Questions
27 Flashcards
Source URL: https://quizplus.com/quiz/74545
Sample Questions
Q1) Which of the following can be capital providers?
A) Shareholders and lenders
B) Shareholders and managers
C) Lenders and suppliers
D) Lenders and customers
Answer: A
Q2) Accounting reports are prepared only for capital providers.
A)True
B)False
Answer: False
Q3) Each category of capital providers has specific reporting needs.
A)True
B)False
Answer: True
Q4) The language of accounting needs to be sufficiently general:
A) To be easily understandable
B) To be applicable to a variety of situations and business models
C) To be flexible
D) To be reliable
Answer: B
Page 3
To view all questions and flashcards with answers, click on the resource link above.
Chapter 2: Introduction to Financial Statements
Available Study Resources on Quizplus for this Chatper
34 Verified Questions
34 Flashcards
Source URL: https://quizplus.com/quiz/74544
Sample Questions
Q1) A liability is a past obligation of the entity arising from present events,the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.
A)True
B)False
Answer: False
Q2) Which items are traditionally listed first in North America?
A) Short-term
B) Valuable
C) Long-term
D) None of these.
Answer: A
Q3) Shareholders' equity is made up of which two components?
A) Share capital and expenses
B) Expenses and revenues
C) Share capital and retained earnings
D) Expenses and retained earnings
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Financial Statements: Interrelations and Construction
Available Study Resources on Quizplus for this Chatper
22 Verified Questions
22 Flashcards
Source URL: https://quizplus.com/quiz/74543
Sample Questions
Q1) By convention,the left-hand side of a T-account is called:
A) Debt side
B) Cash side
C) Debit side
D) Credit side
Answer: C
Q2) Which of the following accounts is expected to present a credit balance?
A) Accounts receivable
B) Provision for doubtful debts
C) Doubtful debt accounts
D) Selling expenses
Answer: B
Q3) Which coding method(s)is (are)used to establish a chart of accounts?
A) Alphabetical
B) Alphanumerical
C) Numerical
D) All of these.
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Accounting Principles and End-Of-Period Adjustments
Available Study Resources on Quizplus for this Chatper
21 Verified Questions
21 Flashcards
Source URL: https://quizplus.com/quiz/74542
Sample Questions
Q1) Financial accounting only records transactions expressed in financial units.
A)True
B)False
Q2) The accrual principle consists in recognizing or recording an event when the cash transactions it induces have been completed.
A)True
B)False
Q3) Why is a physical inventory of existing fixed assets carried out on a regular basis?
A) To check that the assets are used in more than one period.
B) To check that the assets do physically exist.
C) To check that the assets are properly depreciated.
D) None of these.
Q4) What are the four critical requirements or constraints which information users place on accounting?
A) Objectivity,Prudence,Accuracy,Periodicity
B) Objectivity,Prudence,Quality of information,Timeliness
C) Subjectivity,Prudence,Quality of information,Periodicity
D) Objectivity,Prudence,Quality of information,Periodicity
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Regulation of Accounting and Financial Reporting
Available Study Resources on Quizplus for this Chatper
19 Verified Questions
19 Flashcards
Source URL: https://quizplus.com/quiz/74541
Sample Questions
Q1) The profit and loss account in the UK is generally called the ____ in the USA.
A) Revenue and expense account
B) Result account
C) Income generation account
D) None of these.
Q2) The different formats that exist for the presentation of the statement of financial position/balance sheet do not affect its generic content.
A)True
B)False
Q3) The IASB has no authority to require compliance with its accounting standards.
A)True
B)False
Q4) There are several different ways of presenting an income statement but they all provide the same bottom line.
A)True
B)False
Q5) The IASB imposes the use of the classification by function. A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Revenue Recognition Issues
Available Study Resources on Quizplus for this Chatper
21 Verified Questions
21 Flashcards
Source URL: https://quizplus.com/quiz/74540
Sample Questions
Q1) Which of the following equations is correct?
A) Taxable income = Taxable revenues + Deductible expenses or costs
B) Taxable income = Revenues - Expenses
C) Taxable income = Taxable revenues - Deductible expenses or costs
D) Taxable income = Revenues + Expenses
Q2) Which of the following statements does not define a discontinued operation?
A) A discontinued operation represents a separate major line of business or geographical area of operations
B) A discontinued operation is a component of an entity that is not profitable.
C) A discontinued operation is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations.
D) A discontinued operation is a subsidiary acquired exclusively with a view to resale.
Q3) There are two kinds of differences between income tax rules and accounting rules.What are these called?
A) Permanent and impermanent differences
B) Permanent and temporary differences
C) Persistent and temporary differences
D) Present and future differences
To view all questions and flashcards with answers, click on the resource link above.
8
Chapter 7: Tangible Fixed Assets
Available Study Resources on Quizplus for this Chatper
26 Verified Questions
26 Flashcards
Source URL: https://quizplus.com/quiz/74539
Sample Questions
Q1) What is the objective of any accelerated depreciation method?
A) To recognize greater amounts of depreciation in the later years of an asset's life and smaller amounts in the early years
B) To recognize greater amounts of depreciation in the early years of an asset's life and smaller amounts in the later years
C) To recognize stable amounts of depreciation in both the early and in the later years of an asset's life
D) To accelerate the computation of the depreciation expense by the accountants.
Q2) Acquisition cost is the amount of cash or cash equivalents paid,or the fair value of the other consideration given,to acquire an asset at the time of its acquisition.
A)True
B)False
Q3) What is the unsystematic cost allocation called?
A) Depreciation
B) Amortization
C) Depletion
D) Impairment
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Intangible Assets
Available Study Resources on Quizplus for this Chatper
20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/74538
Sample Questions
Q1) What is a trademark?
A) It is a document granted by a government or an official authority bestowing on the inventor of a product or manufacturing process the exclusive right to use or sell the invention or rights to it.
B) It is a contractual agreement that allows the holder to sell certain products or services.
C) It is the exclusive right to the publication,production and sale of the rights for an intellectual creation.
D) It is a distinctive identification of a manufactured product or of a service.
Q2) Which of the following examples is not an example of development activities?
A) The design of tools,jigs,molds and dies involving new technology.
B) The search for,evaluation and final selection of,applications of research findings or other knowledge.
C) The design,construction,and operation of a pilot plant that is not of a scale economically feasible for commercial production.
D) The design,construction,and testing of a chosen alternative for new or improved materials,devices,products,processes,systems,or services.
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 9: Inventories
Available Study Resources on Quizplus for this Chatper
21 Verified Questions
21 Flashcards
Source URL: https://quizplus.com/quiz/74537
Sample Questions
Q1) What is the rule,which requires a business to realign the books when it finds itself in a situation where the book value of inventory is greater than its market value?
A) The rule of 'lower of cost or market'
B) The rule of market to book
C) The rule of 'higher of cost or market'
D) None of these
Q2) In a context of rising costs,income reported under FIFO is:
A) Higher than under LIFO or WAC.
B) Lower than under LIFO or WAC.
C) The same as under LIFO or WAC.
D) Sometimes higher,sometimes lower than under LIFO or WAC.
Q3) The periodic inventory system relies on periodic physical counting.
A)True
B)False
Q4) Which method is used where the items carried in inventory are not fungible?
A) Perpetual inventory
B) Periodic inventory
C) Specific identification method
D) None of these
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Financial Instruments in the Statement of
Financial Position and Fair Value Accounting
Available Study Resources on Quizplus for this Chatper
19 Verified Questions
19 Flashcards
Source URL: https://quizplus.com/quiz/74536
Sample Questions
Q1) Cash equivalents are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes.
A)True
B)False
Q2) Which of the following statements is false?
A) Uncollectible accounts must be written off.
B) A claim is considered as uncollectible when the debtor is not solvent.
C) Uncollectible accounts are not reported in the financial statements.
D) The write off of the uncollectible accounts generates a bad debt expense in the income statement.
Q3) Which of the following items is not a type of accounts receivable reported in the financial statements?
A) Doubtful accounts receivable
B) Disputed accounts receivable
C) Uncollectible accounts receivable
D) Overdue accounts receivable
Q4) IAS 39 defines three categories of financial instruments in assets?
A)True
B)False
12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Shareholders Equity
Available Study Resources on Quizplus for this Chatper
33 Verified Questions
33 Flashcards
Source URL: https://quizplus.com/quiz/74535
Sample Questions
Q1) In the United States,dividends are mostly paid to the shareholders by anticipation.
A)True
B)False
Q2) How often are dividends generally paid in most European countries?
A) Monthly
B) Quarterly
C) Half-yearly
D) Annually
Q3) What are the two types of limited liability companies distinguished by many countries?
A) Small and large limited companies
B) Private and public limited companies
C) National and international limited companies
D) Closed and open limited companies
Q4) In an uncorporated sole entrepreneurship,the liability of the entrepreneur is:
A) Limited to his contribution to the capital of the entity.
B) Unlimited.
C) Limited to the capital of the entity.
D) None of these
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Liabilities and Provisions
Available Study Resources on Quizplus for this Chatper
35 Verified Questions
35 Flashcards
Source URL: https://quizplus.com/quiz/74534
Sample Questions
Q1) What is the term used for the amount that will be given to the bondholder on the date of redemption?
A) Principal
B) Face value
C) Maturity value
D) All of these.
Q2) IFRS 16,which supersedes IAS 17,is applicable for accounting periods on or after:
A) 1 January 2016
B) 1 January 2017
C) 1 January 2018
D) 1 January 2019
Q3) What is included in post-employment benefits?
A) Pensions.
B) Post-employment life insurance.
C) Post-employment medical care.
D) All of these
Q4) In accounting terms,wages and salaries are handled differently.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Business Combinations
Available Study Resources on Quizplus for this Chatper
29 Verified Questions
29 Flashcards
Source URL: https://quizplus.com/quiz/74533
Sample Questions
Q1) What is a contractual arrangement called where two or more parties undertake an economic activity that is subject to joint control?
A) Subsidiary
B) Parent company
C) Associate
D) Joint venture
Q2) According to IFRS 10 (new standard),control exists if,and only if,the investor has
A) Power over the investee
B) Exposure,or rights,to variable returns from its involvement with the investee
C) The ability to use its power over the investee to affect the amount of the investor's return
D) All of these
Q3) How are non-controlling [minority] interests reported in the financial statements?
A) Between shareholders' equity and liabilities.
B) As a part of liabilities of consolidated entity.
C) Included as a part of shareholders' equity.
D) All of these.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Income Statement Analysis
Available Study Resources on Quizplus for this Chatper
21 Verified Questions
21 Flashcards
Source URL: https://quizplus.com/quiz/74532
Sample Questions
Q1) Firms A and B are in all points identical with the exception of their choice of depreciation method for their fixed assets.Firm A uses an accelerated depreciation method while firm B used a straight-line method.In the first year of their operations,which firm has the higher EBITDA
A) Firm A has the higher EBITDA.
B) Both firms have the same EBITDA.
C) Firm B has the higher EBITDA.
Q2) Which of the following items is not a key intermediate balance?
A) Market value added
B) Value added
C) Gross operating profit
D) Commercial margin
Q3) Common-size analysis is based on the preparation of common-sized financial statements,i.e. ,an income statement and a balance sheet presented in percentage of a base figure (indexed as 100).What is generally the base for the income statement?
A) Net income
B) Net sales
C) Exceptional revenue
D) Interest expense
To view all questions and flashcards with answers, click on the resource link above.
Page 16
Chapter 15: Balance Sheet Analysis
Available Study Resources on Quizplus for this Chatper
Source URL: https://quizplus.com/quiz/74531
Sample Questions
Q1) Domino Corp.reported to its shareholders a before tax profit such that the ROA is 2.33% and the ROCE is 3.5% (both based on beginning balances).The Return on sales is 8.75%.Gross margin is 40% and Sales General and Administrative expenses amount to 25% of sales.Long-term debts are bearing interest at the rate of 5% per year.The reimbursement of the principal will be in fine (i.e. ,a balloon payment at maturity).Assume that sales revenue for the year was 100 CU.What was the capital structure in the beginning balance sheet?
A) SHE= 107.12;LTD = 107.12;STD = 437.89
B) SHE= 125;LTD = 125;STD = 130.43
C) SHE= 87.50;LTD = 113.5;STD = 113.50
D) SHE= 125;LTD = 125;STD = 125
Q2) How is the working capital calculated?
A) Working capital need - Net cash
B) Fixed assets - Equity and Long-term liabilities
C) Current assets (except cash)- Current liabilities
D) Equity and Long-term liabilities - Fixed assets
Q3) A positive working capital need is typical of a firm operating in the distribution sector.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Statement of Cash Flows Construction
Available Study Resources on Quizplus for this Chatper
21 Verified Questions
21 Flashcards
Source URL: https://quizplus.com/quiz/74530
Sample Questions
Q1) Which of the following statements is not correct?
A) The direct method presents receipt and payment flows separately for each category of operating activities: selling,purchasing,securing employees labor,etc.
B) The direct method provides information which may be useful in estimating future cash flows and which is not available under the indirect method but is difficult to implement.
C) The vast majority of businesses report cash flows from operating activities using the indirect method.
D) Most standards recommend the indirect method while allowing the direct method.
Q2) Which of the following transactions is not included in financing activities in the statement of cash flows?
A) Receipt of repayment of loans and advances.
B) Proceeds from issuing shares.
C) Repayment of shares.
D) Repayment of debts.
To view all questions and flashcards with answers, click on the resource link above.
18
Chapter 17: Statement of Cash Flows Analysis and Earnings
Available Study Resources on Quizplus for this Chatper
20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/74529
Sample Questions
Q1) Which of the four definitions offered best represents 'Free cash flow' for a business entity:
A) Cash flow from operations minus absolute value of cash flow from investing.
B) Cash flow from operations minus absolute value of dividends paid minus interest payments.
C) Cash flow from operations minus investments for the maintenance of the competitive position minus absolute value of average dividends paid minus interest payments.
D) Cash flow from operations minus debt reimbursements.
Q2) A business entity generates a cash flow from operations of 500 in X1,600 in X2 and 700 in X3.The cash outflow from investing is 250 in X1,350 in X2 and 450 in X3 and is only dedicated to the maintenance of the competitive position of the firm.Cash outflow from financing is 150 in X1,-300 in X2 and -600 in X3.What is true of the available cash flow?
A) It is the same in each of the consecutive years.
B) It increases by 40% over the three years.
C) It declines by increasing proportions each year over the previous one.
D) It is equivalent,with an opposite sign to the cash flow from financing.
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: Ratio Analysis, financial Analysis and Beyond
Available Study Resources on Quizplus for this Chatper
20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/74528
Sample Questions
Q1) The asset turnover ratio (ATR)for Jovial Inc.has evolved as follows over the past three years:
ATR(Y-3)= 200% ATR(Y-2)= 190% ATR(Y-1)= 180%
A) New assets are acquired for the same amount as the annual depreciation expense.
B) Sales revenue grew at a rate that is more rapid than the rate of growth of net assets.
C) Assets are being used more efficiently over time.
D) Assets are being used less efficiently over time.
Q2) Segment reporting consists in:
A) Breaking down the earnings of the firm into the various functional components of its generation process.
B) Breaking down the earnings of a firm into the elements traceable to identifiable components of the business entity defined around markets,technologies or regions.
C) Reporting the three consolidated financial statements of a group plus,separately,those of each of its key subsidiaries.
D) Reporting the accrual-based earnings and the cash flows by structuring them by term.
To view all questions and flashcards with answers, click on the resource link above. Page 20