Question :
41.Which of the following true about foreign trade zones?
A. They illegal : 1237536
41.Which of the following is true about foreign trade zones?
A. They are illegal in the United States.
B. Goods imported into these designated U.S. areas are duty free until they leave the zone.
C. They have a special excise tax.
D. They are areas outside the United States that offer special tax treatments.
42.Establishing international accounting standards is the responsibility of:
A. Securities and Exchange Commission.
B. International Accounting Standards Board.
C. Financial Accounting Standards Board.
D. Accounting Association of America.
43.Which of the following statements is correct?
A. Germany requires companies to provide extensive segment disclosure.
B. Brazil has the highest number of auditors per capita.
C. The United States is the only country that permits companies to use LIFO to account for inventory.
D. Some countries amortize goodwill, while other countries use an impairment test.
44.”Adoption” means abandoning a country’s financial reporting standards and replacing them with:
A. International Accounting Standards.
B. International Financial Accounting Standards.
C. Generally Accepted Accounting Principles.
D. Securities and Exchange Commission Principles.
45.The price of one currency stated in terms of another currency is the:
A. Current ratio.
B. Exchange rate.
C. Facilitating payment.
D. International clearing price.
46.If the exchange rate for a foreign currency (stated in dollars) has risen, a dollar will purchase:
A. An increased amount of that foreign currency.
B. An unchanged amount of that foreign currency.
C. A smaller amount of that foreign currency.
D. An undetermined amount of that foreign currency.
47.Consider the following statement: “A strong dollar rose sharply against the British pound, but fell slightly against the Japanese yen.” This statement indicates that:
A. The British pound is a stronger currency than the Japanese yen.
B. The exchange rate for the yen, stated in dollars, is rising.
C. The exchange rate for the pound, stated in dollars, is rising.
D. The exchange rate for the yen, stated in pounds, is falling.
In a recent financial journal, the exchange rate between the dollar and the British pound was quoted in two ways:
48.Refer to the above data. The number of pounds equal to $50,000 on this date is:
A. £31,250.
B. £80,000.
C. £32,500.
D. Depends upon whether the item is a receivable or a payable.
$50,000/$1.60 = ?31,250 or $50,000 × ?0.625 = ?31,250
49.Refer to the above data. The number of dollars equivalent to £50,000 on this date is:
A. $31,250.
B. $80,000.
C. $32,500.
D. Depends upon whether the item is a receivable or a payable.
?50,000 × $1.60 = $80,000 or ?50,000/?.625 = $80,000
In a recent financial journal, the exchange rate between the dollar and the Japanese yen (¥) was quoted two ways:
50.Refer to the above data. The number of Japanese yen equivalent to $40,000 on this date is: (rounded to whole ¥)
A. ¥3,056,000.
B. ¥5,235,602.
C. ¥5,245,745.
D. Depends upon whether the item is a receivable or a payable.
$40,000 × ¥130.89005 = ¥5,235,602 or $40,000/$0.00764 = ¥5,235,602
