December 2024

3M Company has internal controls in place to prevent violations of the FCPA. These include, but are not limited to:

• Performing reviews and approving transactions that are taking place.
• Month end reconciliations that verify account details and balances
• Both answers are correct

Foreign Corrupt Practices Act (FCPA) contains two sets of provision:

• Anti-bribery provisions and books, records, and internal control provisions
• Only anti-bribery provisions
• External control provisions

According to FCPA, Government Officials can be

• Professors who work at nonstate-run universities
• Consultant, speaker, or advisor
• Government employee who benefits from a 3M research grant

The greatest risk for 3M Company to be engaged with a VIE is through:

• contract manufacturing relationship
• employment related agreement

• goods/services price conditions

Definiton of Variable Interest Entity (VIE) is: entity that does not have sufficient financial support to survive on its own and where at least one of the following characteristics is present:

• Insufficient equity investment at risk
• Equity with substantive voting rights
• Obligation to absorb losses

Consultation with GFAC – External Reporting team is required if:

• the 3M legal entity has a possible VIE arrangement and annual spending is greater than $5M or if the 3M legal entity has an investment in a third-party entity with net assets greater than $5M
• the 3M legal entity has a possible VIE arrangement and annual spending is greater than $15M or if the 3M legal entity has an investment in a third-party entity with net assets greater than $15M
• the 3M legal entity has a possible VIE arrangement and annual spending is greater than $1M

Which statement is false?

• A credit memo reduces sales and the customer’s receivable balance
• A debit memo increases sales and the customer’s receivable balance
• A credit memo increases sales and the customer’s receivable balance

Which entry for issuing a Credit Memo is correct?

• debit Domestic/Export Sales and credit Trade Accounts Receivable
• debit Trade Accounts Receivable and credit Domestic/Export Sales
• debit Trade Accounts Receivable and credit Cash

Which approach of processing A/R adjustments is correct?

• Credit memos may be used to reduce future payments by the customer
• Credit memos may be refunded to the customer
• Both approaches are valid

Overall responsibility for compliance with Inbound Consignment Relationships Global Financial Procedure is assigned to:

• Supply Chain, Finance and Sourcing
• Only Finance
• Sourcing and Supply Chain