International Business Review
Questions
Course Introduction
International Business explores the theories, practices, and challenges of conducting business across national borders. The course covers topics such as global trade environments, international marketing, cross-cultural management, foreign direct investment, global supply chains, and the legal and ethical considerations of operating in diverse regions. Students will analyze how economic, political, and cultural differences influence strategic decision-making for businesses operating internationally, fostering a deep understanding of globalization and preparing students to succeed in a rapidly evolving global marketplace.
Recommended Textbook
International Accounting and Multinational Enterprises 6th Edition by Lee H. Radebaugh
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16 Chapters
693 Verified Questions
693 Flashcards
Source URL: https://quizplus.com/study-set/3628
Page 2
Chapter 1: International Accounting and International Business
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37 Verified Questions
37 Flashcards
Source URL: https://quizplus.com/quiz/72062
Sample Questions
Q1) The first exposure a firm has to international accounting is usually
A) the purchase of a subsidiary
B) establishment of license of a foreign company
C) unsolicited purchase order from a foreign buyer.
D) joint venture with another MNE.
Answer: C
Q2) The major early Venetian influence on the development of accounting was
A) the development of the gold florin, the standard gold piece used in Europe.
B) the spread of double entry accounting.
C) the initial development of double entry accounting.
D) the establishment of the first banking institutions.
Answer: B
Q3) Venice's commerce was driven by sea traffic.
A)True
B)False
Answer: True
Q4) Napoleon found the Italian system of accounting to be inefficient.
A)True
B)False
Answer: False
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Chapter 2: International Accounting Patterns, Culture and Development
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42 Verified Questions
42 Flashcards
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Sample Questions
Q1) According to the deductive approach to accounting classification, A) accounting practices are analyzed and used to develop accounting groups.
B) international accounting groups are developed by linking environmental factors to national practices.
C) it is impossible to compare countries due to cultural differences.
D) disclosure groups are not as significant as are measurement groups in classifying countries.
Answer: B
Q2) The Mueller system of classifying countries for accounting purposes based on their business and economic environments is an example of A) deductive classification.
B) inductive classification.
C) the inability to classify countries for accounting similarities.
D) cultural relativism.
Answer: A
Q3) One of Gray's accounting values is "secrecy versus statutory control."
A)True
B)False
Answer: False
Page 4
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Chapter 3: Comparative International Financial Accounting
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35 Verified Questions
35 Flashcards
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Sample Questions
Q1) Traditionally, Sweden relies on central regulatory control and excludes the accounting profession's involvement.
A)True
B)False
Answer: False
Q2) Italy has quickly adopted EU directives in order to support major family or state-owned enterprises.
A)True
B)False
Answer: False
Q3) Which of the following accurately reflects Japanese accounting?
A). There are no significant legal requirements due to the adherence to a flexible approach to accounting.
B) Accounting standards are set by a government body.
C) According to the measurement and disclosure scales in Gray's model, the Japanese would lean to secrecy
D) Secret reserves are an accounting issue
Answer: B
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Chapter 4: Comparative International Financial Accounting
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28 Verified Questions
28 Flashcards
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Sample Questions
Q1) Which of the following accurately reflects Argentina's accounting?
A) Accounting standards developed by a high degree of consensus.
B) A true and fair view concept is not acceptable due to the strength of the law.
C) There is a tendency to follow a business economics approach to valuation.
D) There is little impact of inflation on accounting because the tax law dominates.
Q2) The Malaysian accounting system
A) has rules developed by FASB
B) focuses more on tax accounting than investor information needs
C) has a strong British influence
D) is more conservative than the Japanese
Q3) Which of the following accurately reflects Chinese accounting?
A) There is a strong Soviet-style accounting influence.
B) The accounting system has been changed to conform with U.S. principles.
C) A more micro-oriented decision-making approach is being encouraged.
D) The Japanese system of accounting has been adopted.
Q4) Chinese government controls the accounting regulation and auditing.
A)True
B)False
Page 6
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Chapter 5: International Financial Statement Analysis
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35 Verified Questions
35 Flashcards
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Sample Questions
Q1) It is possible to determine the degree of conservatism of U.K versus U.S. GAAP, because
A) British firms must disclose the difference due to London Stock Exchange requirements.
B) British firms voluntarily disclose the difference in order to attract U.S. investors.
C) British firms who list an American Depositary Receipt (ADR) or an actual share in the United States must disclose the difference in earnings.
D) all of the above.
Q2) Form 20-F is used for income tax calculations.
A)True
B)False
Q3) The stock market is a dominant influence on earnings in A) the UK and US
B) Japan
C) continental europe
D) countries with extensive infrastructure
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Chapter 6: International Transparency and Disclosure
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Sample Questions
Q1) Subsequent to the Asian "flu" financial crisis, voluntary disclosure increased in Indonesia.
A)True
B)False
Q2) Inflation accounting
A) is given by most MNEs
B) is required in Japan
C) is found in South America
D) is required in US GAAP
Q3) The direct costs of disclosure involve the
A) threat of takeover or merger.
B) cost of data collection and processing.
C) possibility of intervention by government agencies.
D) possibility of claims from political or consumer groups.
E) all of the above.
Q4) Canada
A) makes no requirement how often reports must be issued
B) requires half yearly reports
C) requires annual reports
D) requires quarterly reports
Page 8
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Chapter 7: International Accounting Standards and Global Convergence
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37 Verified Questions
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Sample Questions
Q1) Trade unions are not one of the major participant groups influencing MNE information disclosure.
A)True
B)False
Q2) The European Union and the Organization for Economic Cooperation and Development differ from each other in terms of their accounting harmonization efforts, because
A) the OECD represents primarily developing countries, whereas the EU represents industrial countries.
B) the EU has the force of law behind it, whereas the OECD can only recommend disclosure practices.
C) the EU is involved only in measurement, whereas the OECD is only interested in disclosure.
D) the OECD represents the profession, whereas the EU represents governments.
Q3) Investors have problems with MNE financial statements because A) worldwide consolidations are not the norm in all countries
B) competitive effects of other investors
C) FASB is the principal source of GAAP
D) governments ask for comparability
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Chapter 8: International Business Combinations, Goodwill and Intangibles
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60 Verified Questions
60 Flashcards
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Sample Questions
Q1) Current international accounting standards permits the amortization of goodwill. A)True
B)False
Q2) AT&T has a 60 percent equity interest in a joint venture with Marubeni Corporation in Japan to develop and market laptop notebook portable computers, notably the Safari notebook. Would you classify this operation as an
A) implementor.
B) integrated player.
C) local innovator.
D) multidomestic operation.
Q3) Research and development costs
A) are generally written off immediately to earnings in the United States.
B) are typically capitalized and amortized.
C) are not very significant due to the lack of R&D being done in the U.S. currently.
D) are split into two parts by the IASB. Research costs should be capitalized, whereas development costs should be written off.
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10
Chapter 9: International Segment Reporting
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Sample Questions
Q1) Gaming can occur if the users of financial statements perceive the information contained in them to be a free good.
A)True
B)False
Q2) From a competitive standpoint, segment reporting
A) is closer to a level playing field for single industry or single country firms.
B) does not create problems since most countries have similar reporting requirements.
C) creates a real cost of compiling, processing and disseminating information.
D) requires the disclosure of business dealings with major competitors.
Q3) Current international accounting standards look to the company's organizational structure and internal reporting system as the basis for identifying segments.
A)True
B)False
Q4) Segment identification is very easy in practice.
A)True
B)False
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Chapter 10: Foreign Currency Transactions and Translation
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55 Verified Questions
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Sample Questions
Q1) According to FASB Statement No. 52, which of the following does not have to be disclosed?
A) The aggregate transaction gain or loss included in income.
B) The beginning and ending amount of cumulative translation adjustments.
C) The average exchange rate movement of countries whose operations are material to the parent company's results.
D) The aggregate adjustment for the period resulting from translation adjustments.
Q2) The currency in which the parent company prepares its financial statements is the A) functional currency.
B) reporting currency.
C) historical currency.
D) base currency.
Q3) Remeasurement does not require the temporal rate method. A)True
B)False
Q4) The current rate method would most likely have a translation adjustment. A)True
B)False
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Page 12
Chapter 11: International Accounting for Price Changes
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42 Verified Questions
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Sample Questions
Q1) The effect of inflation on nonmonetary assets is reflected in the
A) only I
B) only II
C) both I and II
D) neither I or II
Q2) In high inflation economies financial liabilities are
A) poor choices for MNEs to have on the balance sheet
B) good choices for MNEs to have on the balance sheet
C) questioned by labor unions
D) restrictive for MNEs
Q3) A major influence of Dutch interest in current value accounting
A) is the extensive training of accountants in business economics
B) is the tulip bulb financial bubble
C) is the favoring of reserve accounting
D) is the Spanish occupation
Q4) In Brazil, current company law requires a general indexation approach to restate historical costs in terms of current purchasing power as of the date of the financial statements.
A)True
B)False
Page 13
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Chapter 12: Corporate Governance and Control of Global Operations
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Sample Questions
Q1) COSO characteristics of internal control include
I..effectiveness and efficiency of operations
II..reliability of financial reporting
A) only for I
B) only for II
C) neither I or II
D) both I and II
Q2) Which of the following reflects information flows of a global innovator?
A) High outflow of knowledge from the local subsidiary to the rest of the corporation and high inflow of knowledge from the rest of the corporation to the local subsidiary.
B) High outflows and low inflows.
C) Low outflows and high inflows.
D) High outflows and high inflows.
Q3) Shareholders
A) directly control MNE operations
B) vote to hire and fire management
C) receive dividends and management appoints the board of directors
D) vote for board of directors who hire and fire management
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Chapter 13: Foreign Exchange Risk Management
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Sample Questions
Q1) During 2004, the Eurodollar became the most widely traded currency.
A)True
B)False
Q2) Assuming that you entered into the option and the strike price were 154, what would be your net cash proceeds on July 15?
A) $117,000.00
B) $114,537.50
C) $114,512.50
D) $115,500.00
Q3) The amount of foreign currency required for one unit of the local currency is the A) direct rate.
B) indirect rate.
C) bid rate.
D) offer rate.
Q4) Transaction exposure depends on financial statement net asset positions.
A)True
B)False
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15
Chapter 14: International Budgeting and Performance Evaluation
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Sample Questions
Q1) Which of the following Lessard/Lorange translation approaches forces management to predict the future?
A) A-1
B) A-3
C) P-3
D) E-3
Q2) Which of the following Lessard/Lorange translation approaches results in a foreign exchange variance?
A) A-1
B) P-2
C) P-3
D) E-3
Q3) The concept of the value of participation in budgeting may be uniquely Anglo-American.
A)True
B)False
Q4) For Japanese MNEs, sales is the most often used measure of performance.
A)True
B)False
Page 16
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Chapter 15: International Auditing Issues
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40 Flashcards
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Sample Questions
Q1) In terms of educational experience to become a certified accountant,
A) the French rely on the apprenticeship approach.
B) the United States use university training as a prerequisite for certification.
C) the Dutch do not rely very much on university training of accountants.
D) the British have a dual approach that uses different styles of universities to train accountants.
Q2) Some countries have an apprentice approach for auditors which does not require university training.
True
A)True
B)False
Q3) Distance is not a problem with international auditing.
False
A)True B)False
Q4) Reciprocity is a problem for international audit firms.
True
A)True B)False
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Chapter 16: International Taxation Issues
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45 Verified Questions
45 Flashcards
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Sample Questions
Q1) The value added tax is a (an)
A) corporate income tax.
B) withholding tax.
C) indirect tax.
D) tax credit.
Q2) The taxation of both domestic and foreign source income is known as
A) double taxation.
B) the worldwide approach.
C) effective vs. statutory.
D) a tax incentive.
Q3) Double taxation occurs on corporation income and stockholders' dividend income.
A)True
B)False
Q4) The total amount of branch profits included in parent income includes the foreign exchange gain.
A)True
B)False
Q5) Tax holidays are days when the government accountants have a vacation.
A)True
B)False
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