IFRS & Inventory – Common Law – International Accounting
These chapters discuss IFRS & Inventory – Common Law – International Accounting.
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
Under IFRS can be valued at_____
historical cost
fair value
average cost
both a or b – Correct
None of the answers apply
Under IFRS which inventory method is prohibited.
FIFO
Weighted average
LIFO – Correct
Lower of cost or net realizable value
None of the answers apply
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
As of December 31, Year 2, a company has an inventory item that was originally purchased for $80 in Year 1. The inventory item was written down to its net realizable value of $60 as of December 31, Year 1. As of December 31, Year 2, the inventory item had a net realizable value of $75 and a replacement cost of $65. Normal profit margins for this company are 20%. Under IFRS, what is the carrying amount of the inventory item as of December 31, Year 2?
$60
$65
$75 – Correct
$80
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
Laws used to protect the public welfare are referred to as:
Administrative law
Statutory law
Common law
Civil law
None of the answers apply – Correct
Common law derives from?
Rulings by Islamic scholars
Past legal precedents – Correct
Codified statues
Roman law
None of the answers apply
In ______ law countries, laws are developed on a case by case basis by judges.
Sharia
Code/civil
Common – Correct
Statute
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
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
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.
Common law derives from?
Rulings by Islamic scholars
Past legal precedents – Correct
Codified statues
Roman law
None of the answers apply
In ______ law countries, laws are developed on a case by case basis by judges.
Sharia
Code/civil
Common – Correct
Statute
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
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 – Common Law
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!