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122.
A _________ is an extension of the parent company, not a separate legal entity.
123.
A ___________ is a separate legal entity owned by the parent company.
124.
Because startups often have several years of losses, a ________ is the favored form,
because it generates tax benefits for the parent company.
125.
____________ is the purchase of a foreign company with the plan to merge and move
corporate headquarters to the foreign location, creating tax savings.
126.
The process of translating and aggregating the subsidiary reports into one company report
is ___________.
127.
The _____________ method translates assets and liabilities at the spot rate on the day the
balance sheet is produced.
128.
The primary currency of a business is its ______ currency.
129.
Harmonization of accounting standards between the international standard (IASB) and the
U.S. standard (FASB) is known as ___________.
130.
In the U.S. GAAP accounting standards rely on rules and regulations, whereas in the IFRS,
the process relies on shared _____________.
131.
In the U.S., the ___________ is responsible for the Financial Accounting Standards Board
(FASB).
132.
In Gray's study of culture in accounting, transparency, and _________ correlate and are
shared by Anglo and Nordic countries.
133.
The _________ tax is an indirect tax paid by the payor, usually on passive income.
134.
In Gray's study of culture in accounting, values of secrecy or privacy and ___________
correlate.
135.
John Elkington introduced the concept of __________________, arguing that corporate
capitalism can become sustainable capitalism.
136.
Unlike 3BL, _________ is a framework whose measures are standardized and thus,
comparable.
137.
The two main sources of external capital for the firm are ___________.
138.
The main source of capital from within the firm is _________.
139.
___________ are stock shares of foreign companies held by an intermediary, usually a
bank, for a U.S. investor in the United States.
140.
The ____________ center is a location that specializes in financing nonresidents, with low
taxes and few banking regulations.
141.
A _______________ loan, made through an intermediary, usually a bank, can be used when
the host country has currency exchange restrictions.
142.
_________________ are payments made for the use of a company's name, trade name,
consulting, and technology.
143.
Transfer ____________ can be used as a cash management technique.
144.
Establishing an international ________________ as a profit center is a way for the company
to increase internal efficiencies in cash flow management.
145.
___________ is taking a position in one market to offset exposure to price changes in
another market.
146.
___________ netting is a way to reduce overall transaction costs.
147.
The cost of transferring funds is the ______________.
148.
__________________ are ways to time the collection and payment of funds.
15-64
149.
When there is a sale in a foreign currency and the payment date is in 30 days,
_____________ exposure is present as a risk.
150.
A foreign currency contract bought or sold forward to protect against foreign currency
movement is a ______________ hedge.
Essay Questions
151.
Discuss the risks associated with transaction exposure and how to hedge them.
152.
How can an IC benefit from leading and lagging?
153.
Discuss the uses of transfer pricing for the IC.
154.
Discuss the risks associated with translation exposure and how to hedge them.
155.
Discuss how culture might impact accounting.
