IFRS & Inventory – Currency Transaction – Accounting
These international accounting chapters discuss IFRS & Inventory – Currency Transaction – Accounting from a global & analytical perspective.
One side of this dimension represents a preference in society for achievement, heroism, assertiveness and material rewards for success.
Power distance
Individualism versus Collectivism
Masculinity versus Femininity – Correct!
Uncertainty Avoidance
None of the answers apply
People in societies exhibiting a large degree of ________ accept a hierarchical order in which everybody has a place, and which needs no further justification.
Power distance – Correct!
Individualism versus Collectivism
Masculinity versus Femininity
Uncertainty Avoidance
None of the answers apply
This dimension stands for a society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun.
Power distance
Individualism versus Collectivism
Masculinity versus Femininity
Uncertainty Avoidance
None of the answers apply – Correct!
Which of the following statements, if any, concerning IFRS for SMEs is/are correct?
1. IFRS for SMEs is based on accrual basis accounting
2. Generally, IFRS for SMEs may be used as an alternative to using OCBOA
1 only
2 only
Both 1 and 2 – Correct!
Neither 1 or 2
Under IFRS translation of the financial statements of a foreign operation is based on the _________.
functional currency concept – Correct!
temporal concept
immediate recognition as an expense
immediate recognition as income
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.
One side of this dimension represents a preference in society for achievement, heroism, assertiveness and material rewards for success.
Power distance
Individualism versus Collectivism
Masculinity versus Femininity – Correct!
Uncertainty Avoidance
None of the answers apply
People in societies exhibiting a large degree of ________ accept a hierarchical order in which everybody has a place, and which needs no further justification.
Power distance – Correct!
Individualism versus Collectivism
Masculinity versus Femininity
Uncertainty Avoidance
None of the answers apply
This dimension stands for a society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun.
Power distance
Individualism versus Collectivism
Masculinity versus Femininity
Uncertainty Avoidance
None of the answers apply – Correct!
The fundamental issue in this dimension is how a society handles inequalities among people.
Power distance – Correct!
Individualism versus Collectivism
Masculinity versus Femininity
Uncertainty Avoidance
None of the answers apply
Countries exhibiting strong __________ maintain rigid codes of belief and behavior and are intolerant of unorthodox behavior and ideas.
Power distance
Individualism versus Collectivism
Masculinity versus Femininity
Uncertainty Avoidance – Correct!
None of the answers apply
One side of this dimension stands for a preference for cooperation, modesty, caring for the weak and quality of life.
Power distance
Individualism versus Collectivism
Masculinity versus Femininity – Correct!
Uncertainty Avoidance
None of the answers apply
Which of the following statements, if any, concerning IFRS for SMEs is/are correct?
1. IFRS for SMEs is based on accrual basis accounting
2. Generally, IFRS for SMEs may be used as an alternative to using OCBOA
1 only
2 only
Both 1 and 2 – Correct!
Neither 1 or 2
A currency transaction method used by financial institutions to fund foreign currency investments is referred to as a:
Spot market
Forward market
Foreign exchange swap
Cross currency swap – Correct!
None of the answers apply
Islam’s legal system is ______ law.
Sharia – Correct!
Statute
Common
Roman law
None of the answers apply
Laws used to resolve disputes between people are referred to as:
Administrative law
Statutory law
Common law
Civil law – Correct!
None of the answers apply
Law written by Congress or a country’s elected or appointed representatives is referred to as:
Administrative law
Statutory law – Correct!
Common law
Civil law
None of the answers apply
Louisiana laws were influenced by Napoleonic ________ .
Sharia law
Statute law
Common law
Code law – Correct!
None of the answers apply
A currency transaction method used by importers and exporters to hedge their currency positions is referred to as a:
Spot market
Forward market
Foreign exchange swap – Correct!
Cross currency swap
None of the answers apply
A currency transaction that involves agreements to exchange a specified amount of one currency for another at a future date is referred to as a:
Spot market
Forward market – Correct!
Foreign exchange swap
Cross currency swap
None of the answers apply
Islam’s legal system is ______ law.
Sharia – Correct
Statute
Common
Roman law
None of the answers apply
Laws used to resolve disputes between people are referred to as:
Administrative law
Statutory law
Common law
Civil law – Correct
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.
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.
IFRS & Inventory – Currency Transaction
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!