南京財(cái)經(jīng)大學(xué)國際會(huì)計(jì)選擇題練習(xí)

TestBankforChapter1

MultipleChoiceQuestions

1.Whichofthefollowingvariablesplayaroleinshapingaccountingdevelopment?

a.natureofcapitalmarketsb.typeofreportingregimec.typeofbusinessentitiesd.Alloftheabove.

e.Bothaandc.

2.Highlevelsoffinancialdisclosurearegenerallyfoundincountries

a.wherebusinessesraisetheircapitalfromalargeanddiverseinvestor/creditorgroup.

b.wherebusinessesraisetheircapitalfromthegovernment.

c.wherethereisalimitednumberofowners.

d.wherethesophisticationofthefinancialcommunityisnotveryhigh.e.wherethecostofpublishingfinancialstatementsishigh.

3.Incountrieswherebusinesscapitalneedsareprovidedbyonlyafewverylargebanks

a.thelevelofdisclosureinfinancialstatementstendstobehigh.

paniestendtodevotesignificantresourcestomaketheirannualreportsattractive.

paniestendtouseincome-increasingaccountingmethods.

paniestendtounderstatereportedearnings.e.Alloftheabove.

4.Whichofthefollowingdoesnotaffectacountry'sfinancialaccountingorientation?

a.Thelevelofinflation.

b.Politicalandeconomictieswithothercountries.

c.Statusoftheaccountingprofession.

d.Qualityofaccountingeducation.

e.Alloftheaboveaffectacountry'sfinancialaccountingorientation.

5.Incountrieswithmicro-orientedaccountingsystems,theroleofaccountingisa.toprovideinvestorswithinformationonthetruepositionofcompanies.

b.toreflecttheeffectofgovernmenteconomicpoliciesincompanyaccounts.c.toprovideinputsforindustryornationalaccountingreports.

d.todeterminethetaxliabilityofbusinessentities.e.Alloftheabove.

6.Whichofthefollowingisnottrueaboutaccounting'sroleinamacro-orientedenvironment,

a.toprovideinvestorswithinformationonthetruepositionofcompanies.

b.toreflecttheeffectofgovernmenteconomicpoliciesincompanyaccounts.c.toprovideinputsforindustryornationalaccountingreports.

d.todeterminethetaxliabilityofbusinessentities.e.Alloftheabove.

7.Whichofthefollowingisnotanenvironmentalfactoraffectingaccounting?

a.Levelofenforcementofregulations

b.Natureofcapitalmarketsc.Typeoflegalsystem

d.Language

e.Levelofinflation

8.Companiesinwhichcountryproduceannualreportstoattractpotentialinvestors:

a.Germany

b.Switzerland

c.UnitedStatesd.Japan

e.France

9.Inwhichpairofcountriesisthereastrongprivatesectorinfluenceonfinancialaccountingstandardsetting?

a.FranceandGermany.

b.ChinaandRussia.

c.FranceandtheUnitedKingdom.

d.GermanyandJapan.

e.TheUnitedKingdomandtheUnitedStates.

10.Whichofthefollowingisanimpetusforinternationalaccountingstandards?

a.Thelinkageofcapitalmarketsworldwide.b.EmergingdemocraciesinLatinAmericac.ThenewactivistroleoftheOECD

d.ThecollapseofcommunismintheformerSovietUnione.TheemergenceoftheWorldTradeOrganization(WTO)

11.Amongthefactorsaffectingaccountingdevelopmentaretheeconomicandpoliticalties

betweencountries.Whichofthefollowingpairsofcountriesdonothavesuchtieswitheachother?

a.PhilippinesandtheUnitedStates

b.SingaporeandtheUnitedKingdomc.MalaysiaandArgentina

d.IndonesiaandtheNetherlandse.FranceandGermany

12.Thestatusoftheaccountingprofessionisafactorthataffectsaccountingdevelopmentincountries.Inwhichofthefollowingcountriesisaccountingnotregardedfavorablyasa

careerchoice?

a.UnitedStatesb.NewZealand

c.Russia

d.Australiae.Canada

13.Whichofthefollowingisnottypicallyincludedinanaccountingconceptualframework?

a.astatementofobjectivesoffinancialaccounting

b.targetedusersoffinancialstatementsc.limitationsoffinancialstatements

d.licensingcriteriaforpublicaccountants

e.characteristicsofgoodfinancialaccounting

14.Whichofthefollowingcountrieshaveconceptualframeworksforaccounting?

a.Singaporeb.Malaysiac.Indonesiad.Canada

e.Alloftheabove

15.Identifythebenefit(s)ofclassifyingcountriesaccordingtotheiraccountingsystems.

a.Countriescanlearnfromtheaccountingexperiencesofothercountriesintheirgroup.b.Countriescanuseothercountriesintheirgroupasmodelsforsettingstandards.

c.Globalstandard-setterscananticipatethereactiontotheirproposedstandards.

d.MNCscanplanonthetypeofdisclosuretheyneedtoprovideinvariouscountries.e.Alloftheabove.

16.WhichofthefollowingaccountingpatternsdidMueller[1967]identifyinhispioneeringclassificationstudyonWestern,market-orientedeconomies?

a.Macroeconomicpattern

b.Microeconomicpattern

c.Independentdisciplineapproach

d.Uniformapproache.Alloftheabove

17.WhichofthefollowingwasnotamongtheaccountingpatternsidentifiedbyMueller[1967]inhispioneeringclassificationstudyonWestern,market-orientedeconomies?

a.Macroeconomicpattern

b.Independentdisciplineapproach

c.Socialistapproach

d.Uniformapproach

e.Microeconomicpattern

18.Nobes'[1983]classificationstudyhadthefollowingEuropeancountriesinthemacro-uniform,continental,tax-basedfamily:

a.Italy,France,W.Germany,Swedenb.Belgium,Spain,Italy,W.Germanyc.Italy,France,Spain,Sweden

d.Italy,France,Ireland,Spaine.Italy,France,Belgium,Spain

19.Nobes'[1983]classificationstudyhadthefollowingcountriesinthemicro-based,U.K.influence,family:

a.Ireland,Netherlands,Canada,Australia

b.Australia,NewZealand,U.K.,Irelandc.Netherlands,Australia,U.K.,U.S.A

d.Australia,Canada,U.K.,Ireland

e.Netherlands,Australia,Canada,U.S.A.

20.Themajorimmediatechallengesthatfaceaccountingintheglobalarenainclude:

a.Globalharmonization

b.Financialreportinginemergingeconomies

c.Socialandenvironmentalreporting

d.Financialreportinginthehightechnologyerae.Alloftheabove

True/FalseQuestions

1.Thepurposeofaccountingistoprovideinformationthatisusefulformakingeconomicdecisions.

2.Inordertomakeinformeddecisionsinaglobalenvironment,oneneedstohaveanunderstandingofinternationalaccountingissues.

3.Theflowofgoodsandservicesacrossnationalbordersrequiresthataccountingstandardsbecountry-specific.

4.Thephenomenalpaceofglobalizationofcapitalmarketsinrecentyearspointstotheneedforcapitalmarketparticipantstounderstandaccountinginformationthatoriginatesinothercountries.

5.Beingeducatedininternationalaccountingisamongtheportfolioofskillsrequiredofmanagersincompaniesengagedininternationalbusiness.

6.Whileaccountingisaproductofitsenvironmentitdoesnotaffecttheenvironmentinwhichitexists.

7.IntheUnitedStates,financialaccountinginformationisdirectedprimarilytowardtheneedsofinvestorsandcreditors,anddecisionusefulnessisthemaincriterionforjudgingits

quality.

8.AccountingintheUnitedStatesisincreasinglyfeelingtheinfluenceofSwissaccountingstandards,asmoreandmoreSwisscompaniesenterU.S.capitalmarkets.

9.Thefactorsthatimpactaccountingatthenationalleveldonotcontributetoaccountingdiversityattheinternationallevel.

10.Inequity-orientedcapitalmarkets,companiesrelyonthefairnessoftheirbankerstoobtainthenecessarycapital.

11.Whetheracountry'scapitalmarketisequity-orientedordebt-orientedhasnoimpactonthefinancialreportingthatdevelopsinthecountry.

12.IncountriessuchasGermany,Japan,andSwitzerlandcompanieshavetraditionallyturnedtothestockmarketastheirprimarysourceofcapital.

13.IncountriessuchasCanadaandtheUnitedStates,oncecompaniesreachacertainsizetheyturntobanksastheirprimarysourceofcapital.

14.Thetypeofcapitalmarketthatexistsinacountryimpactsfinancialreportingatboththecosmeticandthesubstantivelevel.

15.Considerablymoreresourcesaredevotedtothepreparationofannualreportsindebt-orientedcapitalmarketsthaninequity-orientedcapitalmarkets.

16.CountriessuchasAustriaandGermanysetdetailedfinancialreportingruleswhichhavetobecompliedwithforbothtaxreportingandexternalfinancialreporting.

17.IncodelawcountriessuchasFranceandGermany,accountingisregulatedmainlythroughanaccountingcodewhichisgenerallysetbythelegislature.

18.Financialreportingincommonlawcountriestendstobemoretransparentandtimelythanincodelawcountries.

19.Whileitisrelativelyinexpensivetoadoptthesophisticatedaccountingstandardsofanothercountry,ittakesconsiderableresourcestoactuallyimplementsuchstandards.

20.RecentstatisticsshowthattheU.S.hasthehighestnumberofauditorsrelativetothesizeofitspopulation(i.e.,auditorsper100,000population).

21.Thelackoffinancialreportingtransparencyandtheinconsistentapplicationofaudit

standardswereamongthefactorsthatexacerbatedtherecentfinancialcrisisinSoutheastAsia.

22.Inmacro-userorientedsystems,governmententitiessuchastaxandeconomicplanningagenciesaretheprincipalusersofaccountingreports.

23.Inmicro-userorientedaccountingsystemssuchasthoseinFrance,Germany,andSweden,theroleofaccountingisviewedintermsofcontributingtoenterprisestabilityand

continuity.

24.Financialaccountingdiversitybetweencountriesimposesadditionalcostsoncapitalmarketparticipantsworldwide.

25.Theobjectofclassification(orclustering)ininternationalaccountingresearchistogroupcountriesaccordingtothecommonelementsanddistinctivecharacteristicsoftheir

accountingsystems.

SolutionstoChapter1TestQuestionsMultipleChoiceQuestions

1.D

6.A

11.C

16.E

2.A

7.D

12.C

17.C

3.D

8.C

13.D

18.E

4.E

9.E

14.E

19.B

5.A

10.A

15.E

20.E

True/FalseQuestions

1.T

6.F

11.F

16.T

21.T

2.T

7.T

12.F

17.T

22.T

3.F

8.F

13.F

18.T

23.F

4.T

9.F

14.T

19.T

24.T

5.T

10.F

15.F

20.F

25.T

TestBankforChapter2

MultipleChoiceQuestions

1.IntheUnitedStates,theFinancialAccountingStandardsBoard

a.establishesaccountingprinciplesforbusinessandnotforprofitentities.

b.istheenforcementagencyresponsibleformonitoringthatcompaniescomplywithaccountingandsecuritiesregulations.

c.receivesfundingfromtheU.S.government.

d.establishesthetaxcodethatcompaniesmustcomplywith.

e.istherepresentativeoftheU.S.accountingprofessionontheIASB.

2.ThemainbodythatenforcesfinancialaccountingstandardsintheUnitedStatesis

a.TheU.S.AccountingEnforcementAgency(USAEA)b.TheFinancialAccountingStandardsBoard(FASB)c.TheSecuritiesExchangeCommission(SEC)

d.TheAmericanInstituteofCertifiedPublicAccountants(AICPA)e.Alloftheabove.

3.Whatisanargumentagainsttheefforttoharmonizeaccountingglobally?

a.Marketforceswillbringaboutharmonizationifitistrulynecessary.

b.Investorsarerationalenoughtospendtheresourcesnecessarytocorrectlyanalyzeinvestmentopportunitiesandfocusonrealeconomicresults.

c.ItisunnecessarysincemostcountriesalreadyacceptU.S.generallyaccepted

accountingprinciplesasthestandardstobefollowedinpreparingfinancialstatements.

d.Bettertrainingofaccountantsmitigatestheneedforaccountingharmonization.

e.TheBigFouraccountingfirmswouldlosesignificantrevenuesifaccountingruleswereharmonizedglobally.

4.Thekeydevelopmentalorganizationforinternationalaccountingstandardsisthe

a.InternationalAccountingStandardsBoard.

b.InternationalFederationofAccountants.

c.InternationalOrganizationofSecuritiesCommissions.

d.InternationalOrganizationofAccountingStandardSetters.e.GlobalAgencyforAccountingStandards.

5.TheOrganizationforEconomicCooperationandDevelopmentisnot

prisedofthegovernmentsofnearlyalltheindustrializedworld.

b.activelyparticipatinginwritinggenerallyacceptedaccountingprinciplesfortheworld.

c.establishedtofostereconomicgrowthanddevelopmentinmembercountries.

d.responsibleforissuingacodeofconductformultinationalcorporationsthatincludes

guidelinesforvoluntarydisclosuresoffinancialinformation.e.anyoftheabove.

6.Whichofthefollowingorganizationsisdirectlyinvolvedwithdeveloping,publishing,andadvocatingtheuseoffinancialaccountingstandards?

a.AmericanInstituteofCertifiedPublicAccountants

b.OrganizationforEconomicCooperationandDevelopment.

c.NordicFederationofAccountants.

d.InternationalAccountingStandardsBoard.e.InternationalFederationofAccountants.

7.Whichofthefollowingorganizationsisdirectlyinvolvedwithdeveloping,publishing,andadvocatingtheuseofinternationalauditingstandards?

a.InternationalAccountingStandardsBoard.

b.InstituteofCharteredAccountantsofEnglandandWales.

c.UnitedNations.

d.AseanFederationofAccountants.

e.InternationalFederationofAccountants.

8.Whichofthefollowingorganizationsisdirectlyinvolvedwithharmonizingaccountingandauditingstandards?

a.InternationalAccountingStandardsBoard.b.SecuritiesandExchangeCommission.

c.AmericanAccountingAssociation.

d.InternationalFederationofAccountants.e.Both(a)and(d).

9.Globalharmonizationofaccountingprinciplesdoesnotrequire:

a.Completeuniformityinaccountingprinciplesglobally.

b.Thatdifferencesinaccountingstandardsbetweencountriesbekeptataminimum.

c.Thatdifferenceinaccountingrulesmayexistindifferentcountriesaslongastheycanbereconciled.

d.Thatonesupra-nationalorganizationenforceglobalstandardsinallcountries.e.Both(a)and(d).

10.Currentproponentsofharmonizingaccountingstandardsgloballyare

a.Investors.

b.Multinationalcompanies.

c.Thesecuritiesindustryandstockexchanges.

d.Developingcountries.e.Alloftheabove.

11.TheInternationalFederationofAccountants(IFAC)isnotinvolvedin:

a.harmonizingglobalauditingpractices.

vidingethicalguidelinesforauditorsonissuessuchasintegrityandobjectivity.

c.establishingpublicsectorstandardsapplicabletoalllevelsofgovernment.d.maintainingauditorindependenceintoday'scomplexbusinessenvironment.e.administeringaworldwideuniformexaminationforauditors.

12.The"worldclassissuer"approachtoglobalaccountingharmonizationisnotverypromisingbecause:

a.itisopposedbytheU.S.SecuritiesandExchangeCommission.

b.therearedifficultiesinestablishingandagreeinguponthecriteriaforinclusion.

c.itfacesstrongoppositionbyU.S.companies.

d.therearepracticaldifficultiesinimplementation.e.ofalloftheabove.

13.TheG4+1originallyconsistedofaccountingstandard-settersfromthefollowingcountries

plustheInternationalAccountingStandardsCommittee:

a.Australia,Canada,NewZealand,andtheUnitedKingdomb.Bangladesh,India,Pakistan,andSriLanka

c.Indonesia,Japan,Korea,andMalaysia

d.Australia,Canada,theUnitedKingdomandtheUnitedStatese.Noneoftheabove.

14.ThedifferenttypesofarticlesfoundinEuropeanUnion(EU)directivesinclude:

a.uniformrulestobeimplementedinallmembercountries

b.minimumrulesthatmaybestrengthenedbyindividualgovernments

c.alternativeruleswhichgivememberstateschoices

d.Alloftheabove

e.Only(a)and(b)

15.TheEuropeanUnion(EU)hasadoptedanumberofdirectivesdealingwithaccounting

matters.WhichEUdirectivesaregenerallyregardedasthemostsignificantonaccountingissues?

a.TheFirstandSeconddirectives

b.TheFourthandSeventhdirectivesc.TheSecondandFourthdirectivesd.TheThirdandSeventhdirectivese.TheFifthandSixthdirectives

16.TheoveralllackofsuccessoftheEuropeanaccountingharmonizationeffortcanbeattributedto:

a.ThescopeoftheEUdirectivesistechnicallyincompletewithanumberofaccountingtopicsnotbeingdirectlycovered.

b.Thedirectiveswereunevenlyadoptedintoindividualnationallegislation.

c.Thedirectiveswerestaticinstrumentsthatwerenotupdatedandlackedqualityimprovementmechanisms.

d.CompliancewithEUaccountingrulesdidnotprovetobesufficienttoenterglobal

capitalmarkets.e.Alloftheabove.

17.WhichofthefollowingstatementsbestdescribesaccountingharmonizationinEurope?

a.Ithasbeenatremendoussuccessandisbeingcloselystudiedbyotherregionalalliances.

b.ThereisconsiderableevidenceofaccountingharmonizationamongEUcountries.c.TheEUhasdecidedtoturntotheIASBtoachieveaccountingharmonization.

d.TheASEANcountriesarefollowingtheEUmodelofaccountingharmonization.

e.AnnualreportsofcompaniesfromFrance,Germany,andtheUnitedKingdomhavebecomestandardizedasaresultoftheEuropeanaccountingharmonizationinitiative.

18.Thenecessaryconditionsthatcanmakeregionalaccountingharmonizationapolicyobjectiveamongagroupofcountriesinclude:

a.Anarticulatedrationaleandasetofvaluesthatfacilitateregionalaccountingharmony.

b.Ahighlevelofeconomicintegration.

c.Apoliticalinfrastructuretopursueharmonizationwithinabroadpolicyframework.

d.Theeconomicandpoliticalclouttodeveloparegionalvisionwithoutthefearofbeing

marginalizedintheglobalarena.e.Alloftheabove.

19.ThereasonswhyregionalaccountingharmonizationhasnotbeenseriouslypursuedbythemembercountriesoftheAssociationofSoutheastAsianNations(ASEAN)are:

a.ASEANhasnotbeenabletoarticulateaclearrationaleforwhyregionalaccountingharmonizationisapreferredcourseofactionforitsmembercountries.

b.ASEANlacksapoliticalinfrastructuretopursueharmonizationwithinabroadpolicyframework.

c.ASEANcountriesaremainlydevelopingcountrieswithyoungaccountingtraditionsandfacegreaterrisksofbeingmarginalizedintheglobalarenabydevelopingtheirdistinctregionalsystem.

d.ASEANcountriesarenotsufficientlyintegratedeconomicallytowarrantregional

accountingharmonization.e.Alloftheabove.

20.WhichofthefollowingcountrieswasnotasignatoryoftheTreatyofRomeof1957whichledtotheformationoftheEuropeanEconomicCommunity?

a.TheNetherlands

b.France

c.Italy

d.Luxembourg

e.TheUnitedKingdom

True/FalseQuestions

1.Whenaccountingstandardsvaryaroundtheworld,theinherentreliabilityoffinancialstatementswillalsovary.

2.Accountingharmonizationistheprocessbywhichdifferencesinfinancialreportingpracticesamongcountriesarereducedinordertomakefinancialstatementsmore

comparableanddecision-usefulacrosscountries.

3.Theprimaryeconomicrationaleforaccountingharmonizationisthatmajordifferencesinaccountingpracticesactasabarriertocapitalflowingtothemostefficientusers.

4.Thereisaconcernthatsomedevelopingcountriesmightadoptinternationalaccountingstandardstogainglobalrespectabilityfortheirfinancialreportingwithoutconsideringwhetherthesestandardsaresuitablefortheireconomies.

5.Mostdevelopingcountrieshavethetimeandtheresourcestodeveloptheirownindigenousaccountingstandards.

6.Theadoptionofinternationalaccountingstandardsincountriesisapurelytechnicalmatterthatisnotsubjecttopoliticallobbying.

7.Politicallyitiseasierforcountriestoadoptexternalstandardspromulgatedbya

supranationalorganizationsuchastheIASBratherthantoadoptthestandardsofanothercountry.

8.TheWorldBankandUnitedNationsrecentlyopinedthattheinconsistentapplicationofauditingstandardsaroundtheworldadverselyaffectsthecomparabilityoffinancial

statementsfromonecountrytothenext.

9.TheInternationalAccountingStandardsBoardwasformedtodevelopglobalaccountingstandards;compliancewithIASBstandardsismandatoryworldwide.

10.Non-U.S.firmsthatissuesecuritiesintheUnitedStatesmustabidebytherulesoftheSEC.

11.TheOrganizationforEconomicCooperationandDevelopmentissuesaccountingdirectiveswhichhavethefullweightoflawbehindthem.

12.Ininternationalaccounting,harmonizationisamovementawayfromtotaldiversitywhile

standardizationisamovementtowardsuniformity.

13.Ininternationalaccounting,harmonizationandstandardizationarestateswhileharmonyanduniformityareprocesses.

14.TheIASC'searlystandardswerecriticizedforbeingtoonarrowandforallowingtoofewalternatives.

15.Inthe1970s,aUnitedNationscommitteeproducedalistoffinancialandnon-financial

disclosures(tobeprovidedbyMNCs)whichwereheartilyendorsedbymostindustrializedcountries.

16.TheMultijurisdictionalDisclosureSystemnegotiatedbetweenCanadaandtheUnitedStatesrepresentsaverypromisingmodelforglobalaccountingharmonization.

17.TheNewYorkStockExchangestronglyopposesthe"worldclassissuer"approachtoglobalaccountingharmonization.

18.TheG4+1presentlyconsistedofstandard-settersfromAustralia,Canada,NewZealand,theUnitedKingdom,theUnitedStatesandtheInternationalAccountingStandardsCommittee.

19.ThebasicobjectiveoftheEuropeanUnion(EU)istobringaboutacommonmarketwhichallowsforthefreemobilityofcapital,goodsandpeoplebetweenmembercountries.

20.OftheEuropeanUnion(EU)directives,theFourthDirectiveandtheSeventhDirectivearegenerallyregardedasthemostsignificantonaccountingmatters.

21.TheEuropeanaccountingharmonizationefforthasbeenaresoundingsuccessandisbeingcopiedinAsiaandAfrica.

22.TheASEANcountrieshavefollowedtheregionalharmonizationparadigmmodeledaftertheEuropeanUnion(EU)ratherthantheglobalharmonizationparadigmrepresentedbyinternationalaccountingstandards.

23.TheglobalaccountingharmonizationparadigmmakesmoresenseforASEANcountriesthantheregionalharmonizationparadigmbecauseASEANcountriesaremoredependenteconomicallyontheirglobaltradingpartnersthanonotherASEANmembercountries.

24.Japan,Korea,Singapore,andThailandhaveharmonizedtheiraccountingasaresultoftheirmembershipintheAssociationofSoutheastAsianNations(ASEAN).

25.GlobalaccountingharmonizationhasnotbeenpursuedinASEANbecausetherequisiteconditionsthatwouldmakeitanimportantpolicyobjectivearenotpresent.

SolutionstoChapter2TestQuestionsMultipleChoiceQuestions

1.A

6.D

11.E

16.E

2.C

7.E

12.E

17.C

3.A

8.E

13.D

18.E

4.A

9.E

14.D

19.E

5.B

10.E

15.B

20.E

True/FalseQuestions

1.T

6.F

11.F

16.F

21.F

2.T

7.T

12.T

17.F

22.F

3.T

8.T

13.F

18.T

23.T

4.T

9.F

14.F

19.T

24.F

5.F

10.T

15.F

20.T

25.T

TestBankforChapter3

MultipleChoiceQuestions

1.Thecurrencyinwhichtheparentcompanypreparesitsfinancialstatementsisthe

a.basecurrency.

b.functionalcurrency.c.historicalcurrency.d.reportingcurrency.

2.Therightandtheobligationtotradeforeigncurrencyinthefutureatasetrateisa

a.currencyswap.

b.currencyoption.c.forwardcontract.

d.moneymarkethedge.

3.Whichofthefollowingcangiverisetoforeigncurrencytransactionexposure?

a.Sellinggoodswhosepricesarecontractuallydenominatedinaforeigncurrency.

b.Borrowingfundsinaforeigncurrency.

c.Engagingincontractstotradeinforeigncurrencyatafuturedate.d.Othereconomictransactionsdenominatedinforeigncurrencies.e.Alloftheabove.

4.Intheone-transactionapproach:

a.Thegainorlossisrecordedseparately

b.Thegainorlossisreflectedinthevalueoftheresourceacquired

c.Either(a)or(b)

d.Noneoftheabove

5.Thetwo-transactionapproachisrequiredin:

a.TheUnitedStates

b.Australia

c.Canada

d.Alloftheabove

e.Noneoftheabove

6.Aforwardexchangecontractisanagreementto:

a.Buyaforeigncurrencyinthefutureatavariablerateb.Sellaforeigncurrencyinthefutureatavariableratec.Buyorsellaforeigncurrencyinthefutureatasetrated.Noneoftheabove

7.Underthemonetary/non-monetarymethodofforeigncurrencytranslation,depreciation

expenseistranslatedatthe:

a.Currentrate

b.Weightedaveragerate

c.Historicalrate

d.Noneoftheabove

8.Underthetemporalmethod,translationgainsandlossesappearin:

a.thestockholders'equitysection

b.theincomestatementasanormaloperatingitemc.theincomestatementasanextraordinaryitem

d.Noneoftheabove

9.Underthecurrentratemethod

a.allassetsandliabilitiesaretranslatedatthecurrentyear'saverageexchangerate.b.foreigncurrencytranslationgainsandlossesdonotaffecttheincomestatement.c.allrevenuesandexpensesaretranslatedusingthecurrentexchangerate.

d.theincomestatementcontainsacumulativetranslationadjustmentamount.

10.UnderSFASNo.52,thetemporalmethodoftranslationisusedwhen

a.thelocalcurrencyisthefunctionalcurrency.

b.thelocalcurrencyisthereportingcurrency.

c.theparent'scurrencyisthefunctionalcurrency.d.theparent'scurrencyisthereportingcurrency.

11.UnderSFASNo.52,thecurrentratemethodoftranslationisusedwhen

a.thelocalcurrencyisthefunctionalcurrency.

b.thelocalcurrencyisthereportingcurrency.

c.theparent'scurrencyisthefunctionalcurrency.d.theparent'scurrencyisthereportingcurrency.

12.UnderSFASNo.52,ahyperinflationaryeconomyisdefinedasonethathasinflationofapproximately:

a.100percentperyear

b.100percentormoreoverathreeyearperiod

c.25percentperyear

d.Noneoftheabove

13.UnderSFASNo.52,theprimarycurrencyinwhichacompanyconductsitsbusinessiscalledthe:

a.Corecurrency

b.Functionalcurrencyc.Hardcurrency

d.Convertiblecurrency

14.Underwhichtranslationmethodistheforeigncurrencytranslationgainorlosstakentostockholders'equity?

a.Thecurrentratemethodb.Thetemporalmethod

c.Theconversionmethodd.Noneoftheabove

15.Whenaforeignsubsidiary'sfunctionalcurrencyisitslocalcurrencyanditsfinancialstatementsarepreparedinthelocalcurrencythenSFASNo.52requiresthat:

a.Thecurrentmethodbeusedintranslatingfinancialstatements.

b.Thetemporalmethodbeusedinremeasuringfinancialstatements.c.Thetemporalmethodbeusedintranslatingfinancialstatements.

d.Thecurrentmethodbeusedinremeasuringfinancialstatements.

16.AccordingtoSFASNo.52,aself-sustaining,autonomousforeignsubsidiary

a.hasalowvolumeoftransactionswiththeparent.

b.hassalesmainlydenominatedintheparent'scurrency.c.hastheU.S.dollarasitsfunctionalcurrency.

d.obtainsfinancingprimarilyfromtheparent.

e.shouldbedisclosedasaseparategeographicsegment.

17.AccordingtoSFASNo.52,anintegralforeignsubsidiarya.hasalowvolume