Part II - True or False ( 2 point each) 1. Like U.S. GAAP accounting standards, IFRS emphasizes accurate, consistent and meaning comparisons across firms and is rules-based. 2. At the federal level, bank supervision is shared primarily by the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System and the FDIC. 3. In the budget process, the difference between actual results and the budgeted figure is often referred to as a variance or variance analysis. 4. Forward contracts are standard agreements with regard to size and maturity dates. 5. When setting payment terms for intercompany cash flows, a firm will lead its intercompany payments if it expects its currency to appreciate over the next month. 6. Under Fair Disclosure, Regulation FD, public companies can share material nonpublic information to their largest shareholders before other investors because of their large financial stakes. 7. To improve its Cash Conversion Cycle, a company should look to extend its Days Payable and reduce its Days Inventory. 8. The indirect method of preparing a Cash Flow Statement is more commonly used because it is easier to construct. 9. In managing internal liquidity or cash concentration of a firm, the primary objective is to avoid simultaneously borrowing and investing cash externally? 10. Interest Rate Parity allows a company to lock in excess profits by borrowing in the low interest rate currency and investing in the high interest rate currency