The following are nine global business terms used in this chapter. Hedging Foreign exchange risk International Accounting Foreign Corrupt Practices Act Planned economy Standards Board International licensing Harmonization Globalization Exporting Each of the following statements may describe one of these terms. For each statement, indicate the global business term described, or answer "None" if the statement does not correctly describe any of the terms. a. The amount it costs to purchase one unit of currency with another currency. b. Selling a good or service to a foreign customer. A cross-border contractual agreement allowing one company to use the trademarks, patents, or technology of another d. Distinguishes between illegal influence peddling and legal facilitating payments. The practice of minimizing or eliminating risk of loss associated with foreign currency fluctuations. C. company. е. f. Markets dictate the allocation of resources and output among segments of the economy. group charged with the responsibility of creating and encouraging the use of internationa financial reporting standards. g. The

The following are nine global business terms used in this chapter. Hedging Foreign exchange risk International Accounting Foreign Corrupt Practices Act Planned economy Standards Board International licensing Harmonization Globalization Exporting Each of the following statements may describe one of these terms. For each statement, indicate the global business term described, or answer "None" if the statement does not correctly describe any of the terms. a. The amount it costs to purchase one unit of currency with another currency. b. Selling a good or service to a foreign customer. A cross-border contractual agreement allowing one company to use the trademarks, patents, or technology of another d. Distinguishes between illegal influence peddling and legal facilitating payments. The practice of minimizing or eliminating risk of loss associated with foreign currency fluctuations. C. company. е. f. Markets dictate the allocation of resources and output among segments of the economy. group charged with the responsibility of creating and encouraging the use of internationa financial reporting standards. g. The

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter1: Accounting As A Form Of Communication

Section: Chapter Questions

Problem 1.13E

See similar textbooks

Similar questions

Explain TWO (2) external corporate governance mechanisms that can be imposed on Serba Dinamik’s Group Managing Director for his involvement in the manipulation of sales and trade receivables figures of the company for the financial year ended 2021.
115-Assume that you are a consultant in a private accounting firm that provide consultancy to the companies by charging fee. There is seminar where you are given the task to explain the main purpose of the conceptual framework related to financial statements only. So, which of the following points you will choose to present? a. It helps in international accounting standard board in overall development b. It helps in setting national standards in developing countries c. It helps auditor about making any opinion about various statements d. All of the options
Match the correct term with its definition. A. Financial Accounting Standards Board FASB) i. used by the FASB, which is a set of concepts that guide financial reporting B. generally accepted accounting principles (GAAP) ii. independent, nonprofit organization that sets financial accounting and reporting standards for both public- and private-sector businesses that use generally accepted accounting principles (GAAP) here in the United States C. Securities and Exchange Commission SEC) iii. standards, procedures, and principles companies must follow when preparing their financial statements D. conceptual framework iv. assumes a business will continue to operate in the foreseeable future E. going concern assumption v. independent federal agency protecting the interests of investors, regulating stock markets, and ensuring companies adhere to GAAP requirements F. time period assumption vi. companies can present useful information in shorter time periods such as years, quarters, or months
Unusual income statement items Assume that the amount of each of the following items is material to the financial statements. Classify each item as either normally recurring (NR) or unusual (U) items. If unusual item, then specify if it is a discontinued operations item (DO). a. Interest revenue on notes receivable. b. Gain on sale of segment of the company's operations that manufactures bottling equipment. c.Loss on sale of investments in stocks and bonds. d. Uncollectible accounts expense. e. Uninsured flood loss. (Hood insurance is unavailable because of periodic Hooding in the area.)
Ma4. Jill Solomon, in her book Corporate Governance and Accountability (2010) poses the question “How does financial accounting information help shareholders to monitor and control company management in an agency theory framework?”(Page 154). Attempt to provide a cogent answer to this question.
Exercise 1 Below is a summary of the SEC corporate governance requirements of companies publicly-listed in the stock exchange. For each requirement, state how it is intended to help to address the risk of fraud in publicly traded organizations. a. Boards need to consist of at least 3 independent directors or 1/3 of the board which is higher. b. Boards need to hold regular executive sessions of independent directors without management present. c. Boards must have a corporate governance committee composed at least of 3 independent directors. d. The corporate governance committee must have a written charter that addresses the committee’s purpose and responsibilities, and there must be annual performance evaluation of the committee. e. Boards must have an audit committee with a minimum of three independent members. f. The audit committee must have a written charter that addresses the committee’s purpose and responsibilities, and the committee must produce an audit committee report: there…
1.Assume that Management had determined that its organization’s audit committee is not effective. How do the weakness in audit committee affect management’s evaluation of internal control over financial reporting? Would an ineffective audit committee constitute a material weakness in internal control over financial reporting? State the rationale for your response. 2.Why is there a need for a corporation to maintain a comprehensive and cost-efficient communication channels to shareholders and other investors? https://t.co/T2YunPMci6 may participation of employee in corporate governance be encouraged?https://t.co/R4EZqrqGgG whom is the board of directors accountable? 5.Does good governance require absolute rules that must be adopted by all organizations? Explain.Link: https://t.co/iuDNqprARZ Subject: management, accounting
1. Companies present sufficient financial information so the creditors and reasonably prudent investor will not be misled. 2. Companies listed on the philippine stock exchange report audited financial information annually and report unaudited information quarterly. Choices: a. Full disclosure principle b. Time period assumption c. Materiality constraint d. Cost Principle e. Revenue recognition principle f. Conservatism Constraint g. Matching principle h. Economic entity assumption i. Monetary unit j. Going concern k. Some other answers
PROBLEM True (t) or False (f) _____ Currently, both U.S. GAAP and the International Financial Reporting Standars are acceptable for international use. _____ The AICPA's Code of Professional Conduct requires that members prepare financial statements in accordance with generally accepted accotungin principles. _____ Companies consider only quantitative factors in determining whether an item is material. _____ Financial statements are the principal means through which financial information is communicated to those outside an enterprise. _____ The matching principle states that debits must equal credits in each transaction. _____ The income statement is useful for helping to assess the risk or uncertainty of achieving future flows. _____ Revenues, gains, and distributions to owners all increase equity. _____ The balance sheet omits many items that are of financial value to the business but cannot be recorded objectivelty. _____ A strength of the income statement as compared to the…
Please answer all 3 subparts Question 1 (i) Corporate governance in emerging market firms is important from the investors' point of view:A. because effective corporate governance might make up for country weakness in the overall national governance system.B. because many companies are held by family businesses.C. because effective corporate governance requires the agents to work on behalf of shareholders.D. because family businesses do not follow the law. (ii) Which one of the following is NOT a function of the board of a large public company?A. the selection of auditors.B. monitoring the CEO's performance. C. Managing the day to day operations of the corporation.D. The oversight of management in the application of policies and guidelines about the pricipal risks faced by the company. (iii) Which of the following statement is correct?A. All members of the audit committee should be independent non-executive directors.B. Members of the audit committee should be appointed by the board, on…
b) Currently, most governments worldwide require business organization to Comply with automated financial controls that are more advanced that previous manual controls. Using suitable illustration, show how any organization of your choice has complied to this requirement
The following article appeared in the Wall Street Journal. Washington—The Securities and Exchange Commission staff issued guidelines for companies grappling with the problem of dividing up their business into industry segments for their annual reports. An industry segment is defined by the Financial Accounting Standards Board as a part of an enterprise engaged in providing a product or service or a group of related products or services primarily to unaffiliated customers for a profit. Although conceding that the process is a “subjective task” that “to a considerable extent, depends on the judgment of management,” the SEC staff said companies should consider … various factors … to determine whether products and services should be grouped together or reported as segments. Instructions What does financial reporting for segments of a business enterprise involve? Identify the reasons for requiring financial data to be reported by segments. Identify the possible disadvantages of requiring…