For MNC use Pfizer Inc. This is an exam i need someone who is well educated to tackle the questions
ACCT 425 International Accounting Final Examination The comprehensive final exam has two parts including matching, T/F, calculation problems, fill-in the blanks, essays, etc. Total points = 100 When taking the exam, the following instructions should be followed: · The exam is to be completed without the assistance of any other person. You may only use the resources either provided by your instructor for this class or ones that you used when researching topics for this class. · You can either use the exam file for your work or you can create a Word file. Please make sure that your name is included on the exam. Prior to submitting your exam, use print preview to see how the work will print out. · When submitting your final exam this first page must be included and signed. Without your signature, the exam cannot be accepted. Additional instructions: · For multiple-choice and T/F problems, you can use the answer page provided or create a similar page if you are creating your own exam file. Select the most appropriate answer; do not leave any blank. If you are unsure, at least take an educated guess. No answer is always wrong. If you provide two answers for one problem, the problem will be marked wrong. · The remaining questions are a combination of fill in the blanks, problems and essays. If you cannot complete the entire problem, you will receive credit for partial work presented that is accurate. Again, you can use the exam file for your work or create your own file as indicated above. I pledge on my honor that I have not given or received any unauthorized assistance on this examination. In addition, I pledge that I will not disclose to, or discuss the contents of this examination with, students who have not taken it. ______________________________________ _______________ Signed Date Wishing you every success in your future endeavors! ACCT425 Final Exam Spring 2022 Part I Multiple Choice/ True or False Part I Total 22 Points 1. What would be a logical first step that should be taken to restate foreign financial statements to conform to U.S. GAAP, assuming a four-column worksheet will be used to post debit and credit adjustments and reclassifications to arrive at U.S. GAAP statements? A)Restate historical costs to current cost basis. B)Re-order foreign financial statements to U.S. format. C)Convert the foreign currency amounts to U.S. dollars. D)Determine the amount of foreign exchange gains or losses. 2. When accounting rules are left up to professional associations rather than being legislated by governmental bodies, what is the likely result? A) Very general accounting rules are created, as in code law countries. B)Very detailed rules for practice are created, as in common law countries. C)Very general accounting rules are created, as in common law countries. D)Very detailed rules for practice are created, as in code law countries. 3. The taxation of digital transactions in a cross-border context presents several challenges to what concepts? A) The right to tax. B) The allocation of profits between countries. C) Both A & B. D)None of the above. 4. According to IAS 37, how should contingent assets be recognized? A)They should be recognized like any other asset, with a debit to “contingent assets.” B) They should be disclosed in the notes to the financial statements if the inflows of resources are virtually certain. C)They should not be disclosed anywhere in the financial statements due to their uncertainty D) They should only be disclosed in the notes to the financial statements if the inflow of resources is probable. 5. Which of the following is a non-financial measure of performance? A)return on equity B)earnings per share C)return on investment D)market share of return on equity 6. What is a foreign currency transaction? A)It is another name for an international transaction. B)It is a transaction that involves payment at a date sometime in the future. C)It is a business deal denominated in a currency other than a company's domestic currency. D)It is an economic event measured in a currency other than U.S. dollars. 7. Which of the following is generally true about the differences between U.S. GAAP and IASB standards? A)More professional judgment is required to apply U.S. GAAP than is required for implementing IASB standards. B)U.S. GAAP tends to be more rule-based and the IASB standards tend to be principles-based. C)U.S. GAAP is generally more flexible than IASB standards. D)In all cases, U.S. GAAP is more detailed than the IASB standards. 8. A representative market basket of products cost $250 at the beginning of the year, and the same collection of products costs $280 at the end of the year. What is the annual rate of inflation? A) 10.7% B) -10.7% C)11.2% D)12.0% 9. Under U.S. tax law, what happens to excess foreign tax credit? A)It reduces taxes on ordinary income in the current year. B)It can be carried back one year to calculate a refund on additional taxes paid to the U.S. on foreign source income. C)It is lost unless the average foreign tax rate paid by the company in the future is greater than the U.S. tax rate. D)none of the above 10. What is foreign exchange risk exposure? A)the possibility of a loss because of changes in the value of a foreign currency B)losses caused by paying for purchased goods in a foreign currency C)losses caused by receiving payment in a foreign currency for goods sold D)None of the above 11. Under FASB’s new lease accounting standard, lessees will recognize most leases on what statement: A) Balance Sheet B) Income Statement C) Statement of Cash Flows D) None of the above 12. Which of the following must be met for there to be a lease of an asset? a. The asset is explicitly identified in the contract. b. The asset is identified in the contract, either implicitly or explicitly. c. The customer has the right to use the asset. d. The contract has a term of at least 12 months. The next set of questions are True/False, please indicate your answer on the blank answer key provided on the next page. 13. The EU Accounting Regulation requires that all European companies whose securities trade in a regulated securities market must use IFRS as adopted by the EU in their consolidated financials. 14.Less than 100 jurisdictions currently require IFRS for all or most domestic listed companies. 15.The IFRS Foundation decides which countries must use IFRS. 16.IFRS provides the financial information for public capital markets covering over half of the world’s GDP. 17.The members of the IASB serve as representatives of the individual accounting standards-setting boards from their home countries. 18.Many academic studies of the use of IFRS have concluded that IFRS does not improve efficiency of capital markets or promoted cross-border investment. 19.Under IFRS, a company must disclose information about its relationships and transactions with related parties and about compensation of key management personnel. 20.Under IFRS, the objective of financial reporting is to provide financial information about a company that is useful to existing and potential investors, lenders and other creditors in making decisions about providing resources to the company. 21.The Conceptual Framework specifies the form and content of the financial statements that a company must present in conformity with IFRS. 22.Under IFRS, if a non-current asset is held for sale, it must be written down to recoverable amount (fair value less costs to sell), and depreciation stops. Multiple Choice and T/F Answers 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. Part II Fill in the Blanks, Problems & Essays Part II Total 78 Points 1. Tax Jurisdiction and Double Taxation Basis for taxation come from three common bases for taxation… Fill in the blanks below with the correct basis. a. The citizenship-basis taxes income of the country’s _________ regardless of source or where they reside. b. The residence basis taxes income of the country’s __________ regardless of source or citizenship. c. Almost all countries tax income earned within their borders--that is, at its _____________. 2. List the five major areas addressing the importance of international accounting. 3. Foreign currency transactions can be executed on a spot or forward basis. Fill in the blanks with the proper rate basis: ____________ the price at which foreign currency can be purchased or sold today. ____________ the price today at which foreign currency can be purchased or sold sometime in the future. When executing trades on a spot or forward basis, premiums and discounts are involved. Circle or highlight the appropriate term: The forward rate can exceed the spot rate on a given date, in which case the foreign currency is said to be selling at a premium or discount in the forward market, or the forward rate can be less than the spot rate, in which case it is selling at a premium or discount. 4. List the factors that have had a significant influence on accounting development. 5. IAS #____ provides for selection of accounting policies, accounting for changes, dealing with changes in accounting estimates and correction of errors. 6. Define the term hedging. 7. What are the International Accounting Standards that provide guidance for joint ventures? 8. A parent company needs to determine the appropriate method for translating the financial statements of a foreign subsidiary. To determine the appropriate translation method under both SFAS 52 and IAS 21, the functional currency of a foreign subsidiary must be identified