Financial Statements & IFRS – US Company SSIM-Tech
The accounting chapter discuss Financial Statements & IFRS – US Company SSIM-Tech.
What system had a positive influence on accounting practices
Capitalism – Correct
civil law system
code law system
none of the answers apply
The Securities Act of 1933 required financial statements be audited.
True
False – Correct
What state required have a college degree to be a CPA in 1929?
New Jersey
New York – Correct
Maryland
California
none of the answers apply
What release defined and allowed depreciation to be used as a deduction from gross income?
IRS Bulletin F – Correct
The Securities Act of 1933
Revenue Act of 1918
16th Amendment
none of the answers apply
At the end of year 1, a company reduced its inventory cost from $100 to its net realizable value of $80. As of the end of year 2, the inventory was still on hand, and its net realizable value increased to $150. Under IFRS, what journal entry should the company record for year 2 to properly report the inventory value?
Debit inventory for $20 and credit expense for $20. – Correct
Debit inventory for $70 and credit expense for $70.
Credit inventory for $70, credit retained earnings for $50, and credit expense for $20.
Debit inventory for $20, debit expense for $30, and credit retained earnings for $50.
What system had a positive influence on accounting practices
Capitalism – Correct
Socialism
civil law system
code law system
none of the answers apply
The Securities Act of 1933 required financial statements be audited.
True
False – Correct
What state required have a college degree to be a CPA in 1929?
New Jersey
New York – Correct
Maryland
California
none of the answers apply
Under IFRS negative goodwill is _________.
amortized over a five year period
shown as an item in stockholders equity
immediately recognized as an expense
immediately recognized as income – Correct
None of the answers apply
When referring to IFRS, which the following are NOT included?
IAS’s
IFRIC’s
SEC pronouncements – Correct
IFRS Interpretations
None of the answers apply
SSim-Tech, a US corporation has subsidiaries in six foreign countries. When considering taxes the concept that taxes have no effect on resource allocations is referred to as __________ .
tax neutrality – Correct
tax equity
the tax avoidance
tax deferral
none of the answers apply
SSim-Tech, a US corporation has subsidiaries in six foreign countries and is attempting to limit overall tax expenses by manipulating transfer prices. SSim-Tech has net income of $2 million and is in a 35% tax jurisdiction in the US and incurred a tax liability of $700 thousand. I also has a wholly owned subsidiary in a country with a 5% tax rate. SSim-Tech intends to arrange for the foreign subsidiary to own its intellectual property and charge SSim-Tech $1.5 million in royalty fees. What is SSim-Tech’s total tax liability after the royalty charge?
$175,000
$180,000
$195,000
$250,000 – Correct
none of these answers apply
The American Association of Accountants was established in :
1886
1887 – Correct
1888
1889
none of the answers apply
Prior to the ____ no laws or regulations obliged corporations to have their financial statements audited.
1930’s – Correct
1880’s
1900’s
1890s
none of the answers apply
Weak _______ societies maintain a more relaxed attitude in which practice counts more than principles.
Power distance
Individualism versus Collectivism
Masculinity versus Femininity
Uncertainty Avoidance – Correct
None of the answers apply
Which of the following contains “A society’s position on this dimension is reflected in whether people’s self-image is defined in terms of “I” or “we.”
Power distance
Individualism versus Collectivism – Correct
Masculinity versus Femininity
Uncertainty Avoidance
None of the answers apply
SSim-Tech, a US corporation has subsidiaries in six foreign countries. When considering taxes can SSim-Tech lower overall tax expenses by manipulating transfer prices?
True – Correct
False
SSim-Tech, a US company, is getting ready to consolidate a foreign subsidiary financial statements, which are in Euros. The first step in performing the consolidation currency translations is to
determine the subsidiary’s functional currency
to determine if IFRS 9 applies.
determine the parents functional currency. – Correct
record any translation gains or losses.
None of these apply
Under USGAAP which pronouncement covers currency translations?
ASC 830 – Correct
ASC 800
The ASC 21
ASC 9
None of these apply
SSim-Tech, a US company, is getting ready to consolidate a foreign subsidiary financial statements, which are in Euros. The functional currency to be used is
Euro
both the Euro and US dollar
Italian Euro
US dollar – Correct
None of these apply
Under IFRS negative goodwill is _________.
amortized over a five year period
shown as an item in stockholders equity
immediately recognized as an expense
immediately recognized as income – Correct
None of the answers apply
When referring to IFRS, which the following are NOT included?
IAS’s
IFRIC’s
SEC pronouncements – Correct
IFRS Interpretations
None of the answers apply
SSim-Tech, a US company, is getting ready to consolidate a foreign subsidiary financial statements, which are in Euros. The first step in performing the consolidation currency translations is to
determine the subsidiary’s functional currency
to determine if IFRS 9 applies.
determine the parents functional currency. Correct
record any translation gains or losses.
None of these apply
Under USGAAP which pronouncement covers currency translations?
ASC 830 – Correct
ASC 800
The ASC 21
ASC 9
None of these apply
SSim-Tech, a US company, is getting ready to consolidate a foreign subsidiary financial statements, which are in Euros. The functional currency to be used is
Euro
both the Euro and US dollar
Italian Euro
US dollar – Correct
None of these apply
Under IFRS negative goodwill is _________.
amortized over a five year period
shown as an item in stockholders equity
immediately recognized as an expense
immediately recognized as income – Correct
None of the answers apply
Short Answer - Free Response Questions
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Questions
Provide an example of a licensing arrangement and discuss the importance of this activity.
In 1913 the 16th Amendment required that taxes were to be levied on all citizens of the United States, including those living abroad. Is this policy still relevant today? Discuss why imposing taxes on income earned outside the United States is a good or bad thing.
Discuss the Power Distance Index and its importance.
Describe civil / code law characteristics.
Why is transfer pricing a subject for tax authorities? Can income be manipulated through use of transfer prices? If so provide an example.
What is meant by recognition and derecognition in the IASB Framework?
What is codification? Describe its purpose.
Describe the difference between a foreign currency transaction and foreign currency translation. Give examples of each.
Financial Statements & IFRS – US Company
Dear student if you need help with answers/explanations to the questions above, kindly contact us and our tutors will help you explain and solve your questions in 15 minutes. You could message us on Facebook or click here to send us a request. Thank you for visiting us!