IFRS & Inventory – Common Law – International Accounting

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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 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


Under IFRS can be valued at_____

historical cost

fair value

average cost

both a or bCorrect

None of the answers apply


Under IFRS which inventory method is prohibited.

FIFO

Weighted average

LIFOCorrect

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 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


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

$75Correct

$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 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


Laws used to protect the public welfare are referred to as:

Administrative law

Statutory law

Common law

Civil law

None of the answers applyCorrect


Common law derives from?

Rulings by Islamic scholars

Past legal precedentsCorrect

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

CommonCorrect

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 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


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


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 precedentsCorrect

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

CommonCorrect

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 lawCorrect

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!


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