Accounting Quiz4
Settings
- 1.Dilty Corp. owned a subsidiary in France. Dilty concluded that the subsidiary's functional currency was the U.S. dollar. What must Dilty do to ready the subsidiary's financial statements for consolidation?
- A.
Remeasure them.
- B.
First remeasure them, then translate them.
- C.
Translate them.
- D.
First translate them, then remeasure them.
- E.
State all of the subsidiary's accounts in U.S. dollars using the exchange rate in effect at the balance sheet date.
- 2.According to U.S. GAAP for a local currency perspective, which method is usually required for translating a foreign subsidiary's financial statements into the parent's reporting currency?
- A.
The monetary/nonmonetary method.
- B.
The current rate method.
- C.
The remeasurement method.
- D.
The current/noncurrent method.
- E.
The noncurrent rate method.
- 3.The translation adjustment from translating (current method) a foreign subsidiary's financial statements should be shown as
- A.
An asset or liability (depending on the balance) in the consolidated balance sheet.
- B.
A component of stockholders' equity in the consolidated balance sheet.
- C.
A component of cash flows from financing activities in the consolidated statement of cash flows.
- D.
A revenue or expense (depending on the balance) in the consolidated income statement.
- E.
An element of the notes which accompany the consolidated financial statements.
- 4.Which of the following could explain why accounting is more conservative in some countries than in others?
- A.
Published Financial statements are the basis for taxation.
- B.
Published Financial statements are the basis for taxation.
- 5.Which of the following is not a problem caused by differences in financial reporting practices across countries?
- A.
Firms face double taxation on income earned by foreign operations.
- B.
Firms face double taxation on income earned by foreign operations.
- 6.According to the IASB, IFRS are composed of:
- A.
International financial reporting standards issued by the IASB and international accounting standards issued by the IASC.
- B.
International financial reporting standards issued by the IASB and international accounting standards issued by the IASC.
- 7.What is the Norwalk Agreement?
- A.
An agreement between the FASB and the IASB to make their existing standards compatible as soon as practicable and to work together to ensure compatibility in the future.
- B.
An agreement between the FASB and the IASB to make their existing standards compatible as soon as practicable and to work together to ensure compatibility in the future.
- 8.Which of the following does not accurately describe a requirement that a company must fulfill when adopting IFRS for the first time?
- A.
The company must prepare an opening IFRS balance sheet at the beginning of the year for which the company is preparing its first set of IFRS financial statements.
- B.
The company must prepare an opening IFRS balance sheet at the beginning of the year for which the company is preparing its first set of IFRS financial statements.
- 9.In which of the following does the IASB allow firms to choose between two acceptable treatments?
- A.
Measuring property, plant, and equipment subsequent to acquisition.
- B.
Measuring property, plant, and equipment subsequent to acquisition.
- 10.In the United States, foreign companies filing annual reports with the SEC that are not prepared in accordance with U.S. GAAP Must:
Back to top