Financial Statements & IFRS – US Company SSIM-Tech

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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

CapitalismCorrect

Socialism

civil law system

code law system

none of the answers apply


The Securities Act of 1933 required financial statements be audited.

True

FalseCorrect


What state required have a college degree to be a CPA in 1929?

New Jersey

New YorkCorrect

Maryland

California

none of the answers apply


What release defined and allowed depreciation to be used as a deduction from gross income?

IRS Bulletin FCorrect

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

CapitalismCorrect

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 YorkCorrect

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 incomeCorrect

None of the answers apply


When referring to IFRS, which the following are NOT included?

IAS’s

IFRIC’s

SEC pronouncementsCorrect

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 neutralityCorrect

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

$250,000Correct

none of these answers apply


The American Association of Accountants was established in :

1886

1887Correct

1888

1889

none of the answers apply


Prior to the ____ no laws or regulations obliged corporations to have their financial statements audited.

1930’sCorrect

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 AvoidanceCorrect

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 CollectivismCorrect

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?

TrueCorrect

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 830Correct

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 dollarCorrect

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 incomeCorrect

None of the answers apply


 

When referring to IFRS, which the following are NOT included?

IAS’s

IFRIC’s

SEC pronouncementsCorrect

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 dollarCorrect

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 incomeCorrect

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!


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