CLO2-Which of the following items are regarded as a financial liability? 1 point O ordinary shares held in another entity; a contract that is a non-derivative for which the entity is obliged to deliver a variable number of its own equity instruments; O a contractual right to exchange under potentially favourable conditions, an option to purchase shares below the market price; the right of a depositor to obtain cash from a financial institution with which it has deposited cash. 1 point CLO1-The operations of Silver Lights Inc. incorporated in the U.S. are spread out in Ireland, Finland, and Chile. Which of the following statements is true about the operations of Silver Lights Inc.? The financial statements of Silver Lights must be prepared in local currencies of the branch countries for consolidation purposes. O The external auditor of Silver Lights must be proficient in U.S. auditing and financial reporting standards to audit the operations of branch offices. Silver Lights Inc. must give credit for the corporate tax paid as per U.S. tax laws to provide relief from double taxation. The transfer of parts between U.S. operations and other branches should be at the highest acceptable price most profitable to Silver Lights Inc. keeping in view the rate of tax and tax authorities in respective nations. CLO1-In Gray's framework for accounting system development, the cultural dimensions of individualism, power distance, uncertainty avoidance, and masculinity directly affect: O accounting systems. accounting values. external influences. ecological influences. CLO1- Foreign exchange risk arises when: 1 point O business transactions are denominated in foreign currencies. sales are made to customers in a domestic country. goods or services purchased from suppliers in a foreign country are denominated in domestic currency. auditing reports are prepared in a foreign currency. CLO1-Which of the following statements is true about international transfer pricing? O It is a violation of the Foreign Corrupt Practices Act. It is accomplished using guidelines set up by the FASB. It can be used to minimize the amount of worldwide taxes. It cannot be regulated by countries