国际会计复习---业务题答案版2011

International accounting Exercise (2011)A. Complete the following sentences1.We view accounting as consisting of three broad areas: (measurement)、(disclosure) and (auditing). (Measurement)is the process of identifying, categorizing, and quantifying economic activities or transactions. (Disclosure) focuses on issues such as what is to be reported, when ,by what means, and to whom.2. Double-entry originates in the (Italy ) city states.3. Hofstede’s four cultural dimensions are: (individualism vs. collectivism) , (high power distance vs.low power distance),(high uncertainty avoidance vs low uncertainty avoidance ) and (masculinity vs. femininity).4. The four culture dimensions that affect a nation’s financial repor ting practices by Gray refer to ( professionalism vs. statutory control),(uniformity vs. flexibility), (conservatism vs. optimism ) and (secrecy vs. transparency).5. In the countries that the sources of finance mainly rely on the (Capital market or equity market),such as US and UK. Disclosure are extensive to meet the requirements of widespread public ownership.6.In the countries that the sources of finance mainly rely on the (banks or credit system ),such as Japan and Switzerland. In order to protect the creditor, extensive public disclosure are not considered necessary.7.The legal system of Western world can be considered two different types, one is (code law or civil law) and the other is (common law or case law).8. In (code law or civil law) countries, laws are an all-embracing. Accounting standards and procedures are incorporated into national laws.9.Accounting standard setting normally involves a combination of (private) and (public) sector groups. The (private) sector includes the accounting profession and other groups affected by the financial reporting process. The (public )sector includes such agencies as tax authorities. ministries responsible for commercial law, and securities commissions.10.One key distinction in financial reporting is weather accounting is oriented toward (a fair presentation) of financial position and results of operations or toward (compliance withlegal )requirements and tax laws.11.Accounting in the United States is regulated by a private sector body (the Financial Accounting Standards board, or FASB), but a governmental agency (the Securities and Exchange Commission, or SEC)underpins the authority of its standards. SEC have right to supervise and revise to the standard finally .12.The accounting “（the true and fair）” view appear in United Kingdom（companies law）(1948) first.13.In France, large companies must also prepare documents relating to ( the prevention of business bankruptcies) and (a social report).14.The following three exchange rates can be used to translate foreign currency balances to domestic currency. they are （current rate.），（historical rate ）and（average rate）15. In France ,Business expenses are deductible for tax purpose only if they are (fully booked) and reflected in annual financial statements.16. In France, CNCC is a professional society composed of certified public auditors. Administered by ( Ministry of Justice).17. A feature of French accounting is the dichotomy between (individual company) financial statements and those for the （consolidated）group.18.Conservative（balance sheet ）valuations are central to (creditor protection). This creates a tendency to undervalue(低估) assets and overvalue liabilities19. （Certified public accountants）in Germany are called WPs. Or (enterprise examiners ).20. In German, the second-tier（二级）body of auditors is named( Book Examiners), who are only allowed to audit small and medium-sized companies21. There are two classification auditors in Japan. One engaged in (statutory audit), the other engaged in (independent ) audit.22. One of the accounting paradoxes(悖论）in ( Netherlands) is that it is a code law country but it’s accounting is oriented toward fair presentation.23.The Dutch flexibility toward accounting measurements may be most evident in permitting the use of ( current value )for tangible assets such as inventory and depreciable assets.24.The majority countries in the world use the direct quote . except (U.K. or British) and ( U.S. or America ).25.There are two accounting treatments for foreign currency transaction ,one is(single-transaction ) perspective and the other is( two-transaction ) perspective.26. In a (direct quote ), the exchange rate specifies the number of domestic currency units needed to acquire a unit of foreign currency.27.Under a ( deferral ) method ,translation gains and losses are listed on the balance sheet. It is regarded as a single item ”“Translation adjustment”, list at the part of “owner’s equity”. 28.Under (No deferral ) method translation gains and losses are listed on the income statement. It is regarded as ”“Translation gains or losses”,list after “management expenses”.29.There are four methods can be used in foreign currency translation. They are(current rate ) method, (current-noncurrent) method,(monetary-nonmonetary) method and (temporal )method.30. Use ( current )rate to translate statement items should not give rise to translation gains or losses, so it can preserves the original cost equivalent of a foreign currency item in the reporting currency.31. Exchange gains and losses can be divided two parts :( translation ) gains and losses and (transaction ) gains and losses.32. Under ( current rate ) method all foreign assets and liabilities translated at the current rate. But except for the items owner’s equity.33. Under (current rate ) method ,the consolidated statements preserve the original financial statement relationships such as financial ratios.34. (monetary-nonmonetary ) method views monetary assets and liabilities exposed to exchange rate risk.35.Under(temporal ) method, foreign currency balances at historical cost are translated at historical rates, and foreign currency balances at current cost or market value are translated at the current rate.36.A subsidiary company perspective requires the ( current rate ) translation method in order to preserve relationship exiting in the foreign currency statements.37. General price level change refers to a movement in the prices of all goods and services in an economy on average. Positive price movement is termed ( inflation ). Negative price movement is called ( deflation ).38 .Holding gain refers to the (increase) in the current cost of a nonmonetary asset.39. An excessive rate of inflation as when the general level of prices in an economy increases by more than 25 percent per annum is called( hyperinflation ).40. Inflation is the increase in the general level of prices of all ( goods ) and (services) in an economy.41. Accounting for the financial statement effects of general price-level changes is called the (Historical cost-constant purchasing power )model.42. GPL is a cost ratio that compares the cost of a basket of goods in the current period with the cost of that same basket in a (base or prior ) period.43. Purchasing power gain or loss is the difference between the net monetary items measured by (constant purchasing power currency) unit with the net monetary items measured by (nominal currency) unit.44. Under general price level accounting, net income is the sum of the two numbers ,one is adjusted operating income ,the other is ( purchasing power gain or loss ).45.Current cost-based net income include two parts, one is (realized income,)the other is (unrealized holding gains. )46. At present, primary derivative financial instruments may be classified into following categories: (futures contract),(option contract),(forward contract )and (swap contract).47. The recognition of derivative financial instruments can be mainly divided into three phases: (initial recognition),(subsequent recognition) and (de- recognition).48. Accounting for the financial statement effects of general price-level changes is calledthe(historical cost-constant purchasing power) model. Accounting for specific price changes is referred to as the (current cost )model49. Under the ( European ) options , the buyer will make a choice at the end of time. Under the (American ) options , the buyer will make a choice before the end of time.50.( Exercise Price ) means the trading price of a option contract that both sidesagreement.(Exercise Value )is the profit get by the buyer. It is a intrinsic value of a option.51.( Interest rate swap ) means the exchange of the debts which use the same currency at different interest rate.52. The three types of hedging are:( fair value hedging),( cash flow hedging ) and hedging for a firm’s net investment of overseas operating .53. (Tax neutrality) means that taxes have no effect on resource allocation decisions. If taxes influence the allocation of resources ,the result will probably be less than optimal. 54.( Taxes equity) means that taxpayers who are similarly situated should pay the same tax55. The government of the host country levy taxes on the benefit from (dividend),( interest )and (royalty payments) that gained by foreign investor is called ( withholding tax ).56.The principles on the income from a foreign country Including (territorial) principle, (person) principle and ( world ) principle.57. The method of avoidance of international double taxation usually consist of( tax deductions), (tax credit ), (tax exemption.) and (bilateral tax treaties).58. There are two basic tax administration systems in the world ,one is (classical ) system ,the other is(integrated) system.59.The countries or areas those with few natural resources offer permanent tax inducements fora business. They are called(Tax havens).60.(Bilateral Tax treaties) refers to the agreements between countries on taxation of income and withholding taxesB. Choose the Correct Answer for Each Item Below1. In general ,which of the following items is not the basic characteristic of Fair Presentation Accounting?( d )a. with a common law legal systemb. shareholders as the principal source of finance.c. auditors exercise more judgment and auditing profession tends to be more development and self-regulated .d. the public sector is relatively more influential in standards setting.2.In which country the financial accounting and taxation are separated? (b)a. Germanyb. United Kingdomc. Japand. France3. In general ,which of the following items is not the basic characteristic of Legal Compliance Accounting?(c)a. have a code law legal systemb. rely heavily on banks and the governments as sources of finance.c. the private sector is relatively more influential in standards setting.d. have a close linkage between financial and tax accounting.4.In the chapter of” Comparative Accounting”, what are the three areas that we have compared? (abc)a. accounting regulation and enforcementb. financial reportingc. accounting measurements.d. disclosure5.Which is the most important accounting regulation of France? (a)a. PCGb. Code de Commercec. Accounting actd. Company Law6. In France, which organization has real regulatory power. ( b)a. CNC (National Accounting Board)b. CRC (Accounting Regulation Committee)c. AMF (Financial Markets Authority)d. OEC (Institute of Public Accountants)7.In which country the legal permit the professional accountant's on-the-job condition is the same as certified accountant. So, more than 85 certified accountants are the certified public auditor at the same time . (a)a. Franceb. Germanyc. Japand. Netherland8.In France, besides basic financial reporting such as balance sheet and income statement, large companies must also prepare documents relating to (ab )a. the prevention of business bankruptciesb. social reportc. cash flow statementd. selected quarterly data9. A leading Japanese scholar refers to Japan Accounting regulation as a “triangular legal system”. Which one of the following is not belong to the system? ( d )a. Commercial Codeb. Securities and Exchange Lawc. Corporate Income Tax Lawd. Civil Law10. In Japan, the financial statements and supporting schedules of small and medium-sized companies are subject to audit only by (a ).a. Statutory Auditorsb. Independent Auditorc. Enterprise Examinerd. Book Examiner11. In Japan, the financial statements of publicly held companies must be audited in accordance with the Securities and Exchange Law by ( ab ).a. Statutory Auditorsb. Independent Auditorc. Enterprise Examinerd. Book Examiner12. In Japan, ( a )do not need any particular professional qualifications and are employed by the company on a full-time basis.a. Statutory Auditorsb. Independent Auditorc. Enterprise Examinerd. Book Examiner13. Which one of the following reporting is the unique to Japan? ( d )a. balance sheetb. income statementc. cash flow statementd. proposal for appropriation of retained earnings14. (c ) is the important accounting regulation of Netherlands.a. Commercial Codeb. Tax Lawc. Civil Coded. Securities and Exchange Law15. The first country to develop an accountancy profession is ( c ).a. Franceb. Germanyc. United Kingdomd. United State16. The “true and fair view” begin to appear first in ( c) Companies Law (1948)a. Franceb. Germanyc. United Kingdomd. United State17.In Britain ,( b ) is empowered to issue accounting Standards.a. Financial Reporting Councilb. Accounting Standards Boardc. Financial Reporting Review Paneld. Urgent Issues Task Force18. Which one of the following foreign currency translation method belongs to single rate method( a )a. current rate methodb. current-noncurrent methodc. monetary-nonmonetary methodd. temporal method19. what methods belong to Multiple rate methods.( bcd )a. current rate methodb. current-noncurrent methodc. monetary-nonmonetary methodd. temporal method20.Under( d ) , foreign currency balances at historical cost are translated at historical rates, and foreign currency balances at current cost or market value are translated at the current rate.a. current rate methodb. current-noncurrent methodc. monetary-nonmonetary methodd. temporal method21. ( c) method views monetary assets and liabilities exposed to exchange rate risk.a. Current rate methodb. Current-noncurrent methodc. Monetary-nonmonetary methodd. Temporal method22 Under( bcd)method, depreciation, amortization charges at historical rates in effect whenrelated assets are acquired.a. current rate methodb. current-noncurrent methodc. monetary-nonmonetary methodd. temporal method23.Under( a )method, depreciation, amortization charges at current rates .a. current rate methodb. current-noncurrent methodc. monetary-nonmonetary methodd. temporal method24.Functional currency can be the( abc ) currency.a. parentb. localc. another foreignd. any25. Generally we select the (b) currency as functional currency when sales market of a subsidiary company is largely in the host country and denominated in local currency.a. parentb. localc. another foreignd. any26..( a ) belongs to monetary assets .a. cashb. inventoryc. equipmentd. land27.( b ) belongs to nonmonetary assets.a. cashb. inventoryc. accounts receivabled. notes receivable28. ( d ) will bring purchasing gains during a period of inflation.a. cashb. inventoryc. accounts receivabled. accounts payable29. ( ac ) will bring purchasing loss during a period of inflation.a. cashb. inventoryc. accounts receivabled. accounts payable30. ( b ) will bring holding gains during a period of inflation.a. cashb. inventoryc. accounts receivabled. accounts payable31. During a period of price changes, assets recorded at their original acquisition costs resulting in an overstatement in reported income. This will not lead to( d).a. higher taxesb. higher dividendsc. higher wagesd. underestimate income32. Accounting for the financial statement effects of general price-level changes is called the ( a )model.a. historical cost-constant purchasing powerb. historical cost-nominal purchasing powerc. current cost-constant purchasing powerd. current cost- nominal purchasing power33. During inflation, a firm holding monetary assets experiences a ( a ).a .purchasing power loss b. purchasing power gain c. holding loss d. holding gain34. Current cost-based net income generally include three items. They are(abc )a. current cost-based operating incomeb. realized holding gainsc. unrealized holding gainsd. unrealized operating income35. Under current cost accounting model,( c ) need to adjusted from historical cost to current cost.a. cashb. accounts receivablec. inventoryd. short-term debt36. (abc ) belongs to basis financial instruments.a. common stockb. corporate bondsc. accounts receivabled. bonds option investment37. ( d) belongs to derivative financial instruments.a. common stockb. corporate bondsc. accounts receivabled. bonds option investment38.( a ) is regarded as a standardized forward contract.a. futures contractb. option contractc. swap contractd. commodity contract39. ( c )refers to the account treatment for a financial instruments at the settlement date.a .Initial recognitionb .Subsequent recognitionc. De-recognitiond. Accounting recognition40. According to the choice of the initial recognition time point ,there are two accounting model use for dealing with derivative financial instruments .(ab)a. transaction date accountingb. settlement date accountingc. initial date accountingd. subsequent date accounting41. Under the ( b) options , the buyer will make a choice before the end of time.a. Europeanb. Americanc. calld. put42. Withholding tax refers to the tax imposed on ( abc ) to foreign investors.a. dividendb. interestc. royaltyd. operating earnings43. ( a) is called border tax.a. Customs dutiesb. Export dutiesc. Withholding taxd. Corporate tax44. A company operating abroad encounters a variety of taxes, which is not one of them?( d )a. corporate income taxb. withholding taxc. Border taxd. business tax45.What are the important factors that can affect the tax burden of a business?( abc )a. tax ratesb. taxable incomec. social overhead costsd. economic level46.The principles on the income from a foreign country of China is ( c )a. territorial principleb. person principlec. world principled. source jurisdiction principle47. In ( a ) ,businesses that purchase real estate may get tax preference from 6% to10% at the year of purchasea. Americab. Englandc. Germany D. China48. Under( a ), Corporate income is taxed twice.a. classical systemb. integrated systemc. tax-split Systemd. tax- credit system49. The complicating Variables that affect the International Transfer Pricing including (abcd).a. tax considerationsb. tariff considerationsc. competitive factorsd. environmental risks50.OECD identifies several broad methods of ascertaining an arm’s-length price. Theyare(abcd )a. comparable uncontrolled price methodb. comparable uncontrolled transaction methodc. resale price methodd. cost-plus pricing methodC. Explain to the Concepts1. International accountingInternational accounting is a area of accounting which study on how to treatment specific accounting practice of a multinational company or how to provide information of an entity to non-domestic readers2.GoodwillGoodwill is capitalized as the difference between fair value of the consideration given in the exchange and the fair values of the underlying net assets acquired.4.direct quoteThe exchange rate specifies the number of domestic currency units needed to acquire a unit of foreign currency.5.indirect quoteThe exchange rate specifies the price of a unit of the domestic currency in terms of the foreign currency.6.current rateThe exchange rate in effect at the relevant financial statement date.7.functional currencyThe primary currency in which an entity does business and generates and spends cash. It is usually the currency of the country where the entity is located and thecurrency in which the books of record are maintained8.historical rateThe foreign exchange rate that prevailed when a foreign currency asset or liability was first acquired or incurred.9.monetary itemsObligations to pay or rights to receive a fixed number of currency units in the future.10.settlement dateThe date on which a payable is paid or a receivable is collected.11. general price level changeRefers to a movement (change) in the prices of all goods and services in an economy on average.12. specific price changeRefers to the movement (a change) in the price of a specific good or service caused by changes in demand and supply.13. general purchasing power equivalentsCurrency amounts that have been adjusted for changes in the general level of prices.14. specific price change.The change in the price of specific commodity, such as inventory or equipment.15. holding gainIncrease in the current cost of a nonmonetary asset.16. hyperinflationAn excessive rate of inflation as when the general level of prices in an economy increases by more than 25 percent per annum.17. purchasing powerThe general ability of a monetary unit to command goods and services.18. monetary gainsIncrease in general purchasing power that occur when monetary liabilities are held during a period of inflation.19. monetary lossesDecreases in general purchasing power that occur when monetary assets are held during a period of inflation.20.GPLGPL is a cost ratio that compares the cost of a basket of goods in the current period with the cost of that same basket in a prior or base period.D. Answer the questions below1. What factors are contributing to the importance of international accounting as a field of study?Growth and spread of multinational operationsGlobal competitionCross-border mergers and acquisitionsInternationalization of capital markets2.What are the major influence factors of the accounting pattern?1) sources of finance2)legal system3)taxation4)political and economic ties5)inflation6)level of economic development7)education level8)culture3. How many components are included in a typical annual financial report of a large U.S. corporations? What are they?A typical annual financial report of a large U.S. corporation includes the following components:(1)report of management(2)report of independent auditors(3)Primary financial statements (income statement, balance sheet, statement of cash flows,statement of comprehensive income, and statement of stockholders’equity)(4)management discussion and analysis of results of operations and financial condition(5)notes to financial statements(6)five-or ten-year comparison of selected financial data(7)selected quarterly data.4 .Please explain the main contents of the Director’s reports in British.The director’s report addresses principal business activities, review of operations and likely developments, important post-balance sheet events, recommended dividends, names of the directors and their shareholdings, and political and charitable contributions.5.British financial reporting generally include 7 parts, what are they?(1)Director’s report(2)Profit and loss account and balance sheet(3)cash flow statement(4)Statement of total recognized gains and losses(5)Statements of accounting policies(6)Notes that are referenced to the financial statements(7)Auditor’s report6. Fluctuating exchange rates cause several major issues in accounting for foreign currency translation, what are they?(1)Which exchange rate should be used to translate foreign currency balances to domesticcurrency?(2)Which foreign currency assets and liabilities are exposed to exchange rate changes?(3)How should translation gains and losses be accounted for?E. Judgment of the item below is false or true1. Domestic accounting is an information specialty providing information about a firm to users of that information as a basis for economic decisions. √2. International accounting is a branch of accounting. It resolves the specific accounting practice of a multinational company or providing information of an entity to non-domestic readers.√3.Accounting can be divided into three broad areas : measurement ,disclosure and auditing. √4.In the history of accounting ,double-entry originates in the British city states. ×5.In the history of accounting, Dutch enhance periodic income measurement.√6. Hofstede’s four cultural dimensions are: Professionalism vs. statutory control, Uniformity vs. flexibility, conservatism vs. optimism and Secrecy vs. transparency .×7. In the countries that the sources of finance mainly rely on the banks, such as US and UK. Disclosure are extensive to meet the requirements of widespread public ownership.×8.The legal system of Western world can be considered two different types, one is code law and the other is civil law. ×9.In most common law countries, accounting rules are establish by private-sector professional organizations.√10.In Sweden and Germany, financial accounting is separated from tax accounting.×11.In Netherlands, tax legislation determine accounting standard.×12. Accounting in Sweden developed from the microeconomic approach. ×13. Accounting developed from macroeconomic approach in the Netherlands.×14. Accounting developed as independent discipline in the U.K and the U.S.√15.Under Uniform approach, Accounting is standardized by central government and used as a tool for administrative control. Japan is the example.×16. The private sector who set the accounting standards includes the accounting profession and other groups affected by the financial reporting process. √17.The accounting practice emphasize Fairness and Substance over Form when the orientations of accounting is compliance with legal requirements .×18. When the orientations of accounting is compliance with legal requirements, financial and tax accounting are unified that there will be no deferred tax .√19.In France, a company whose employee exceed 300 peoples should be considered a large company. It has more disclosure obligation.√20.In Germany, auditor must report to the state prosecutor all criminal acts that they find in the course of auditing. √21. In Britain, more than 85 certified accountants are the certified public auditor at the same time ×22. Creditor protection is a fundamental concern of German accounting .√23. British accounting is designed to compute a prudent income amount that leaves creditors unharmed after distributions are made to owners. ×24.In Germany, WPs and Book Examiner are legally sanctioned to conduct independent audit examinations of companies.√25. In Japan, the commercial Code is administered by the Ministry of finance.×26.In America, expenses can be claimed for tax purposes only if they are fully booked.×27. In Japan ,both statutory and independent auditors must audit large corporations. √28. In the Netherlands, independent auditors may complain to the enterprise chamber if it believes that a company’s financial statements don’t conform to applicable law. ×29.In a indirect quote, the exchange rate specifies the number of domestic currency units needed to acquire a unit of foreign currency.×30.Domestic currency equivalents are obtained by multiplying foreign currency balances by direct。