Midterm Answers
UMUC
ACCT665
Selected Topics in Acct: Combined Entities, Multinational, Government and Nonprofit Accounting
Module Exam 1
Answers
Dr. Dori Lombard
This Module Exam 1 covers chapters 1, 2, 4, 5, 7, 8, and 10. The exam consists of 40 multiple choice questions. There are a total of 100 points in the exam. The exam is 20% of your overall course grade. Complete your work on a Word document, save it, and attach it to Assignments.
The exam is open book, which means that you may refer to the text, lectures, your notes, conference posts, and other course materials presented in WebTycho for this class. You may not use Library services or the internet to research questions.
This exam is an individual assignment – meaning that you must work alone on this exam. Collaboration (working with others in the class or outside of class) is NOT allowed on this exam. Under no circumstances should you seek the aid of another person. Nor should you provide such aid to others.
All policies in the syllabus that relate to standards for submission for graduate-level work and course specific grading policies, including policies on plagiarism and other academic misconduct apply to this exam.
Good luck!
Chapter 1: 1. As used in international accounting, a “hedge” is: A) a business transaction made to reduce the exposure of foreign exchange risk. B) the legal barrier between the various divisions of a multinational company. C) the loss in US $ resulting from a decline in the value of the US $ relative to foreign currencies. D) one form of foreign direct investment. Answer: A
2. A translation adjustment may be necessary when: A) notes to financial statements are converted from one language to another. B) foreign currency financial statements are converted to another currency. C) consolidated financial statements are prepared. D) hedging foreign currency. Answer: B
3. What is “transfer pricing?”
ACCT665
Selected Topics in Acct: Combined Entities, Multinational, Government and Nonprofit Accounting
Module Exam 1
Answers
Dr. Dori Lombard
This Module Exam 1 covers chapters 1, 2, 4, 5, 7, 8, and 10. The exam consists of 40 multiple choice questions. There are a total of 100 points in the exam. The exam is 20% of your overall course grade. Complete your work on a Word document, save it, and attach it to Assignments.
The exam is open book, which means that you may refer to the text, lectures, your notes, conference posts, and other course materials presented in WebTycho for this class. You may not use Library services or the internet to research questions.
This exam is an individual assignment – meaning that you must work alone on this exam. Collaboration (working with others in the class or outside of class) is NOT allowed on this exam. Under no circumstances should you seek the aid of another person. Nor should you provide such aid to others.
All policies in the syllabus that relate to standards for submission for graduate-level work and course specific grading policies, including policies on plagiarism and other academic misconduct apply to this exam.
Good luck!
Chapter 1: 1. As used in international accounting, a “hedge” is: A) a business transaction made to reduce the exposure of foreign exchange risk. B) the legal barrier between the various divisions of a multinational company. C) the loss in US $ resulting from a decline in the value of the US $ relative to foreign currencies. D) one form of foreign direct investment. Answer: A
2. A translation adjustment may be necessary when: A) notes to financial statements are converted from one language to another. B) foreign currency financial statements are converted to another currency. C) consolidated financial statements are prepared. D) hedging foreign currency. Answer: B
3. What is “transfer pricing?”