IFRS & Inventory – Currency Transaction – Accounting

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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 FemininityCorrect!

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 distanceCorrect!

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 applyCorrect!

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 2Correct!

Neither 1 or 2


Under IFRS translation of the financial statements of a foreign operation is based on the _________.

functional currency conceptCorrect!

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 FemininityCorrect!

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 distanceCorrect!

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 applyCorrect!


The fundamental issue in this dimension is how a society handles inequalities among people.

Power distanceCorrect!

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 AvoidanceCorrect!

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 FemininityCorrect!

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 2Correct!

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 swapCorrect!

None of the answers apply


Islam’s legal system is ______ law.

ShariaCorrect!

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 lawCorrect!

None of the answers apply


Law written by Congress or a country’s elected or appointed representatives is referred to as:

Administrative law

Statutory lawCorrect!

Common law

Civil law

None of the answers apply


Louisiana laws were influenced by Napoleonic ________ .

Sharia law

Statute law

Common law

Code lawCorrect!

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 swapCorrect!

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 marketCorrect!

Foreign exchange swap

Cross currency swap

None of the answers apply


Islam’s legal system is ______ law.

ShariaCorrect

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 lawCorrect

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!


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