MULTIPLE CHOICE please i need help with all of the questions

1. The Internal Revenue Code regulates transfer pricing in the United States by encouraging the use of a transfer price that

a.	reflects what the price would have been if the underlying transaction was between unrelated parties.
b.	shifts all income to the United States based company.
c.	maximizes parent taxable income regardless of where the parent corporation is incorporated.
d.	shifts all income to the highest income tax jurisdiction.

OBJ: 9-10

2. A manufacturer produced a good with a value of 250, the retailer added 125 to the value of the good. Assuming the value added tax rate is 15% the net value added tax due to the government by the retailer is

a.	37.50
b.	18.75
c.	56.25
d.	0

OBJ: 9-10

3. A manufacturer produced a good with a value of 300, the retailer added 140 to the value of the good. Assuming the value added tax rate is 10% the final price to the consumer would be

a.	470
b.	484
c.	517
d.	454

OBJ: 9-10

4. Parent Corporation is located in a country with an income tax rate of 40%. Subsidiary Company is located in a country with an income tax rate of 25%. The best tax strategy for the enterprise would be to set the transfer prices on sales of goods from the subsidiary to the parent at a price that is

a.	higher than the price that would be in effect for unrelated parties in an arms length transaction.
b.	lower than the price that would be in effect for unrelated parties in an arms length transaction.
c.	equal to the price that would be in effect for unrelated parties in an arms length transaction.
d.	transfer prices do not affect overall tax paid.

OBJ: 9-10

5. The International Accounting Standards Board (IASB) works to formulate international accounting standards that are adopted by each country

a.	when approved by the IASB.
b.	when accepted by the majority of IASB member countries.
c.	on a voluntary basis.
d.	only after acceptance by 2/3 of IASB member countries.

OBJ: 9-9

6. The main difference between U.S. accounting standards and international accounting standards when accounting for plant, property and equipment is

a.	international accounting standards require the use of current fair value with changes recognized in equity only.
b.	U.S. accounting standards do not allow the write-down of assets due to impairment.
c.	international accounting standards allow plant, property and equipment to be stated at current fair value with changes recognized in income or equity.
d.	U.S. accounting standards allow plant, property and equipment to be stated at current fair value with changes recognized in income or equity.

OBJ: 9-9

7. Which of the following statements best differentiates multinational firms from domestic firms?

a.	Multinational firms have overseas sales offices.
b.	Multinationals engage in both importing and exporting.
c.	Multinational firms have one or more plant(s) in a foreign country.
d.	Multinational business people make use of worldwide sales, capital, and labor markets.

OBJ: 9-1

8. Which of the following factors has NOT influenced the development of accounting practices in various nations?

a.	the political environment
b.	economic development
c.	cultural background
d.	all of these factors have influenced the development of accounting practices

OBJ: 9-4

9. Which of the following accounting areas is NOT significantly affected by international activity?

a.	overhead allocation
b.	recognition principles
c.	auditing standards
d.	all are significantly affected

OBJ: 9-3

10. Why would a U.S. manufacturing firm select a foreign site for one of its plants?

a.	The site is closer to the product market area
b.	Labor costs are more favorable
c.	The foreign country's tax environment is more attractive
d.	All of these factors could influence a firm's decision to manufacture overseas.

OBJ: Introduction| 9-1