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NEW QUESTION: 1
Which of the following statements is true with respect to international transfer pricing?
A. Limitations on taking profits out of a foreign country can be avoided by charging the foreign subsidiary a higher transfer price.
B. Transfer prices charged to foreign subsidiaries must be the same as those charged to domestic subsidiaries.
C. The existence of tariffs in the foreign country may necessitate that a higher transfer price be charged a foreign subsidiary.
D. Currency restrictions prohibit payments to foreign vendors.
Answer: A
Explanation:
Transfer pricing is an important aspect of the tax calculation for multinational corporations that transfer inventories between branches in different countries. Transfer prices charged to foreign subsidiaries may differ substantially from those charged to domestic subsidiaries for a variety of reasons. Limitations on taking profits out of a foreign country can be avoided by charging the foreign subsidiary a higher transfer price so that little or no profit exists to be repatriated.

NEW QUESTION: 2
Which step allows you to add a Watch to an automation variable?
A. Right-click the incoming/outgoing execution port (yellow dot) of the variable, and select Add Watch
B. Right-click the execution link (yellow execution line) coming from the variable, and select Add Watch
C. Right-click the input/output data port (blue dot) of the variable, and select Add Watch
D. Right-click the data link (blue propagate line) coming from the variable, and select Add Watch.
Answer: A
Explanation:
Explanation/Reference:
Reference: http://help.openspan.com/52/Diagnostics/Watches.htm

NEW QUESTION: 3
Under US GAAP accounting, R&D expenses cannot be capitalized. They must be expensed as and when incurred. Which of the following is NOT a reason to support this practice?
A. R&D expenses are difficult to measure and hence, must be expensed in accordance with accrual accounting principles.
B. In most cases, there is a significant lag between R&D expenses and the determination of the potential success of the research.
C. There remains a high uncertainty about the ultimate benefits to be derived from the R&D activities on which the expenses are incurred.
D. Most R&D activities represent intangible benefits which are hard to evaluate objectively from an accounting perspective.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Note that R&D expenses are, for the most part, are clearly ear-marked as such and hence, are not difficult to measure. Of course, some of these expenses go into generating tangible assets like laboratories and flasks but these are easily measurable and do get capitalized under US GAAP. The other three reasons imply that it is difficult to measure the present value of the assets being generated (if at all) by the research. This prevents a consistent and reliable application of the accrual principles, which require allocation of expenses in proportion to the current benefits generated. Hence, US GAAP takes the easiest solution of expensing all the R&D costs.

NEW QUESTION: 4
DRAG DROP


Answer:
Explanation: