Quiz TAX

Who is responsible for providing necessary data and required supporting documentation for reconciling items?

• All process streams
• The Global Process Lead (GPL) and The Area Process Lead (APL)
• Local Finance and Business Finance

Which statement is not true?

• Only Required Adjustments (Unreconciled and Reconciling) items should be provided with ageing
• Goodwill and intangible assets are reconciled at a BG level
• Aging generally starts when the unreconciled or unsupported item is identified. When an account is reconciled quarterly, it is identified when the reconciliation is performed. It then continues to age if it is not resolved.

Which accounts can not be auto-certified?

• Zero Balance Account (ZBA)
• Sub-ledger balance is equal to the general ledger.
• General Ledger balance has no changes since last reconciliation

One of criterias says an accrual must be posted when the probability of an event occurring as a percentage is at least?

• 70%

• 50%

• 90%

In which situations accrual must be considered for booking ?

• When goods/services are not received yet, but the amount is known from the budget or forcast
• When the value is not material
• When the documentation is reliable and authorized according to received good/services

Finish the sentence and mark which of the statements is wrong. "Prepayments are strongly discouraged and are not permitted for manufacturing materials and service as...":

• They have a negative impact on cash at 3M
• They have a negative impact on cash at a vendor
• When the prepayment is requested by a vendor, it raises questions regarding the viability of the vendor and their ability to perform to 3M specifications

GSC Finance Manager must auhtorize prior to booking:

• Non- repetitive accruals over $10,000
• Non- repetitive and unusual accruals over $500,000
• Non- repetitive accruals over $50,000

3M must prepare and complete accurate and timely tax returns in accordance with”

• Local jurisdiction tax standards,
• State and federal tax standards,
• International tax standards
• All of above

Department responsible for implementation of International Income Tax Accounting Standard at local level is:

• The St. Paul Tax Department,
• Local Tax Department,
• Both departments

Which entities should follow U.S. GAAP Accounting Standard Codification (ASC) 740 Income Taxes ( governs how companies recognize the effects of income taxes on their financial statements)

• All 3M Entities,
• Only selected countries listed in GFS ‘International Income Tax Accounting’ ,
• Entities listed in GFS “ International Income Tax Accounting “obligatory, Other entities may, but not required to implement the standard