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IC recap2

Total questions: 8

Worksheet time: 5mins

Name
Class
Date
1.

Which of the following can be the example of intercompany recharges?

a)

Management Fees

b)

IT costs

c)

Insurance

d)

All answers are correct

2.

Is seller (AR side) always right?

a)

Yes

b)

No

3.

Which of the following should be (usually is) included in Intercompany Policy?

a)

Deadlines

b)

Invoice requirements

c)

Thresholds

d)

Disputes handling

e)

All answers are correct

4.

Is it obligatory to have Intercompany Policy?

a)

Yes

b)

No

c)

No, but is recommended

5.

During IC reconciliation in December it was discovered that 1 invoice was not posted on buyer (AP) side. What should be done if AP subledger is already closed?

a)

No action required

b)

No action needed in December, invoice to be posted in January

c)

Accrual should be booked in December, reversed in January and invoice posted in January

6.

Company A and B are in the same group XYZ which has a headquarter in Amsterdam. Company A (US) issued intercompany invoice to company B (Switzerland), amount of the invoice 5000 USD for the goods sold. In which currency invoice should be accounted for by company B?

a)

in CHF which is a currency of company B

b)

in USD which is a document currency

c)

in EUR which is a group currency 

7.

 Group XYZ consist of 5 companies A, B, C, D &E

Company F provides Insurance services and issues invoices to company C.

Is this an intercompany transaction?

a)

Yes

b)

No

8.

What are the purposes of Intercompany Reconciliation within the same corporate group?

a)

Global tax reconciliation

b)

Preparation of consolidated financial statements

c)

Defining margin on operational business units

d)

Elimination of intercompany profits