Question 1

​Which of the following is true of a joint venture?

Accepted Answer

A joint venture is a type of partnership in which investors co-own the enterprise, typically for a specific project or limited amount of time. This allows companies to share resources, expertise, and risks while also maintaining their own identity and objectives. Option B refers to a wholly owned subsidiary, while option C describes outsourcing and option D is not true as many U.S. firms enter into joint ventures with foreign firms.

Question 2

​Which of the following is true of economic risk?

Accepted Answer

Economic risk refers to the possibility that a firm's present value of future cash flows will be affected by exchange rate fluctuations. It is different from translation risk, which refers to the impact of exchange rate fluctuations on a company's financial statements. Option A is describing transaction risk, and option B is describing cash flow risk.

Question 3

On February 1, Synergy Import-Export Company sells merchandise to Japanese firms costing 90,000 yen.Payment will be made in Japanese yen on May 1.The exchange rates of yen for $1 were as follows:

- 
 Calculate the receivable in dollars on February 1.(Note: Round answer to the nearest cent.)
 On February 1, Synergy Import-Export Company sells merchandise to Mexican firms costing 90,000 pesos.Payment will be made in pesos, on May 1.The exchange rates of pesos for $1 were as follows:
February 1 $1 = 10.9 pesos
May 1 $1 = 11.4 pesos
Calculate the receivable in dollars on February 1.(Note: Round answer to the nearest dollar.)

Accepted Answer

Receivable in dollars on February 1 = Merchandise cost / Exchange rate of yen for $1 on February 1 = ¥90,000 / ¥111.23 = $809.13

Question 4

​Which of the following is true of the fraud triangle?

Accepted Answer

The fraud triangle is a model that explains the three essential elements that must be present for fraud to occur: opportunity, incentive/pressure, and rationalization/attitude. Therefore, option A is the correct answer. Option B is incorrect since the fraud triangle does not state that only a perceived unshareable financial need leads to fraud. Option C is incorrect since being able to rationalize the commission of fraud is only one of the three essential elements of the fraud triangle. Option D is incorrect since the fraud triangle does not address how stellar employees prevent fraud in a company.

Question 5

​Multinational companies with subsidiaries in both high- and low-tax countries may use transfer pricing to:

Accepted Answer

Transfer pricing can be used by multinational companies to minimize their overall tax burden by shifting costs to high-tax countries (where the deductions are more valuable) and shifting revenues to low-tax countries (where the income is taxed at a lower rate).

Question 6

Which of the following is true of accounting risk?​

Accepted Answer

Accounting risk refers to the degree to which a firm's financial statements are exposed to exchange rate fluctuation. It is not synonymous with transaction risk (which refers to the risk of loss from a transaction denominated in a different currency than the firm's functional currency). Also, accounting risk relates to the firm's financial statements, rather than the present value of future cash flows as in choice A, or future cash transactions as in choice D.

Question 7

​Changes in the spot rates can:

Accepted Answer

The answer of ​Changes in the spot rates can:
...

Question 8

​The application of accounting knowledge in legal or other cases to help resolve different types of disputes is:

Accepted Answer

Forensic accounting involves the application of accounting knowledge, investigative skills, and legal principles to analyze financial information and provide evidence in legal or other disputes. The other options, lean accounting, features and characteristics accounting, and integrated accounting, do not involve the resolution of disputes or forensic analysis.

Question 9

​When U.S.dollar strengthen relative to Japanese yen, it reflects that:

Accepted Answer

When U.S. dollar strengthens relative to Japanese yen, it means that it can buy more Japanese yen. This is because the exchange rate between the two currencies has increased, indicating that the U.S. dollar is more valuable compared to the Japanese yen. Option A is incorrect as the U.S. dollar has actually appreciated against the Japanese yen. Option B is incorrect as the two currencies would only have the same purchasing power if their exchange rate was 1:1. Option C is also incorrect as it states that the U.S. dollar can buy fewer Japanese yen, which is the opposite of what actually happens when the U.S. dollar strengthens against the Japanese yen.

Question 10

​When U.S.dollars weaken relative to euros, it reflects that:

Accepted Answer

When U.S. dollars weaken relative to euros, it means that U.S. dollars can buy fewer euros. This is because the value of the U.S. dollar has decreased in relation to the euro, making it less valuable and requiring more dollars to purchase one euro.

Question 11

​Which of the following is true of an exchange gain?

Accepted Answer

An exchange gain occurs when there is a favorable change in the exchange rate from the time a transaction is initiated to the time it is settled, leading to a gain when converting foreign currency transactions back to the home currency. If the home currency appreciates, it means you get more of the foreign currency for the same amount of home currency, leading to a gain.

Question 12

​Which of the following is true of forensic accounting?

Accepted Answer

Forensic accounting is the use of accounting knowledge and techniques in legal or other disputes to provide an accounting analysis that is suitable for use by a court of law or other legal body. It involves the application of accounting principles, theories, and disciplines to conduct investigations into financial and commercial matters.

Question 13

On February 1, Synergy Import-Export Company sells merchandise to Japanese firms costing 90,000 yen.Payment will be made in Japanese yen on May 1.The exchange rates of yen for $1 were as follows:

-  Calculate the dollar value of the amount paid in yen on May 1.(Note: Round answer to the nearest cent.)

Accepted Answer

Dollar value of the amount paid in yen on May 1 = Merchandise cost / Exchange rate of yen for $1 on May 1 = ¥90,000 / ¥109.25 = $823.80

Question 14

terms listed below.
-The possibility that future cash transactions will be affected by changing exchange rates?

Accepted Answer

The term that best defines the possibility that future cash transactions will be affected by changing exchange rates is transaction risk. This refers to the potential financial loss that a company could suffer due to fluctuations in the exchange rate of currencies involved in their transactions.

Question 15

Elite Corp.builds a manufacturing plant in a foreign trade zone.Materials costing $2,000,000 each month are imported.Duty is assessed at 6% of cost.About 14% of the materials are defective and disposed of as waste.What is the savings to the company of locating inside a foreign trade zone?

Accepted Answer

Each month, the company pays a duty of $103,200 ($2,000,000 × 0.86 × 0.06) since only (100% - 14%) 86% of the material is good and can be sold.If the company were located outside the foreign trade zone, a duty of $120,000 ($2,000,000 × 0.06) would be paid.Thus, the savings amounted to ($120,000 - $103,200) $16,800 per month.

Question 16

Over half the cases of fraud are discovered through:​

Accepted Answer

According to the Association of Certified Fraud Examiners' 2020 Report to the Nations, 43% of fraud cases were discovered through tips received by a hotline or other employee reporting mechanism, while another 17% were discovered by accident. This means that over half of all cases of fraud are detected through tips and accidents. Internal audits and controls, as well as external audits, play an important role in preventing and detecting fraud, but they are less likely to be the primary method of detection.

Question 17

​_____ is a premier credential for a forensic accountant.

Accepted Answer

Certified Fraud Examiner (CFE) is the premier credential for a forensic accountant. While the other options are important accounting and finance designations, only the CFE specifically focuses on fraud detection, deterrence, and investigation.

Question 18

terms listed below.
-?Uses a single rate to assign conversion costs and approximates a comprehensive ABC system based in duration drivers

Accepted Answer

Duration-based costing uses a single rate to assign conversion costs based on duration drivers. It is similar to ABC (activity-based costing) but approximates a comprehensive ABC system.

The other options are not related to this concept: 
A) Risk response net benefit refers to the potential benefit gained by taking a risk response 
B) Sustainability assurance relates to assessing and ensuring sustainable business practices 
C) Internal failure costs are costs incurred due to defects or errors found before a product is shipped to a customer 
E) Transaction risk refers to the potential financial risk in a transaction 
F) Fraud refers to intentional deception or misrepresentation for personal gain.

Question 19

​Which of the following is true of an exchange loss?

Accepted Answer

An exchange loss occurs when there is a depreciation of the home currency relative to the foreign currency, leading to a loss when exchanging one currency for another. This means the value of the home currency has decreased, causing more of it to be needed to purchase the same amount of foreign currency.

Question 20

​Which of the following represents an advantage of setting up a manufacturing plant in a foreign trade zone?

Accepted Answer

Goods imported into a foreign trade zone are duty-free until they leave the zone for sale in the United States, allowing companies to defer or reduce customs duties.

Quiz 13: Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

​Which of the following is true of a joint venture?

​Which of the following is true of economic risk?

​Which of the following is true of the fraud triangle?

​Multinational companies with subsidiaries in both high- and low-tax countries may use transfer pricing to:

Which of the following is true of accounting risk?​

​Changes in the spot rates can:

​The application of accounting knowledge in legal or other cases to help resolve different types of disputes is:

​When U.S.dollar strengthen relative to Japanese yen, it reflects that:

​When U.S.dollars weaken relative to euros, it reflects that:

​Which of the following is true of an exchange gain?

​Which of the following is true of forensic accounting?

terms listed below. -The possibility that future cash transactions will be affected by changing exchange rates?

Elite Corp.builds a manufacturing plant in a foreign trade zone.Materials costing $2,000,000 each month are imported.Duty is assessed at 6% of cost.About 14% of the materials are defective and disposed of as waste.What is the savings to the company of locating inside a foreign trade zone?

Over half the cases of fraud are discovered through:​

​_____ is a premier credential for a forensic accountant.

terms listed below. -?Uses a single rate to assign conversion costs and approximates a comprehensive ABC system based in duration drivers

​Which of the following is true of an exchange loss?

​Which of the following represents an advantage of setting up a manufacturing plant in a foreign trade zone?

Which of the following is true of a joint venture?

Which of the following is true of economic risk?

Which of the following is true of the fraud triangle?

Multinational companies with subsidiaries in both high- and low-tax countries may use transfer pricing to:

Which of the following is true of accounting risk?

Changes in the spot rates can:

The application of accounting knowledge in legal or other cases to help resolve different types of disputes is:

When U.S.dollar strengthen relative to Japanese yen, it reflects that:

When U.S.dollars weaken relative to euros, it reflects that:

Which of the following is true of an exchange gain?

Which of the following is true of forensic accounting?

Over half the cases of fraud are discovered through:

_____ is a premier credential for a forensic accountant.

Which of the following is true of an exchange loss?

Which of the following represents an advantage of setting up a manufacturing plant in a foreign trade zone?