International Accounting Exam 1 Flashcards
1
Q
Main Accounting Issue related to international sales
A
Currency issues and differences in currency
2
Q
Trade Deficit
A
when a country is importing more than exporting
3
Q
Pros of Trade Deficit
A
- improves standard of living
- lowers costs
- Foreign investment in other companies
4
Q
Cons of trade deficit
A
- harmful for developing countries
- job outsourcing
- foreign ownership
- Reduction in currency value
5
Q
Foreign Direct Investment
A
setting up and doing business in another country
6
Q
Pro of FDI
A
- increases sales and profits
- Ability to enter new markets
- Reduces costs
- tax incentives
7
Q
Cons of FDI
A
- Under foreign control
- loss of domestic jobs
- risk of political or economical change
8
Q
Horizontal
A
expanding through similar Industries
9
Q
Vertical
A
expanding through the supply chain
10
Q
conglomerate
A
expanding through investing in a different industry
11
Q
FCPA 4 Elements
A
- To make a payment
- involves a foreign official, politician, or candidate
- intent to corrupt
- purpose of influencing a government official
12
Q
Called Up Share Capital (UK)
A
Common Stock
13
Q
Provisions (UK)
A
Estimated Liabilities
14
Q
Share Premium account (UK)
A
APIC
15
Q
Own shares held (UK)
A
Treasury stock
