February 2025

Which items can't be classified as non operating income/expense?

• a)Interest income on loans
• b) Late fees/interest assessed to customers on past due invoices
• c)Interest expense on outstanding debt

Which item is classified as an operating expense, is the item a result of day to day business transactions?

• a) TRUE
• b)FALSE

Which items can be classified as non operating income/expense?

• a) Bank and lockbox fees
• b)Currency exchange gains and losses
• c) Transaction gain/loss on strategic swaps that hedge interest rates

Mark-up factors sale of semi-finished inventory are established for:

• a)      each global product.
• b)      each destination legal entity.
• c)      both.

CPIC (Central Pricing of Inter-Company):

• a)      is used to determine all transfer prices between inter-company selling and purchasing entities.
• b)      is used to determine all contract prices between inter-company selling and purchasing entities.
• c)      is used to determine certain contract prices between inter-company selling and purchasing entities.

Mark-up factors for finished goods:

• a)      are different than mark-up factors for semi-finished inventory.
• b)      are the same as mark-up semi-finished inventory.
• c)      does not exist.

Inter-company payment must be made;

• in the next payment cycle after match requirements (receipt of goods, invoiced price, purchase order price and quantity) have been satisfied.
• in the next payment cycle even match requirements (receipt of goods, invoiced price, purchase order price and quantity) have not been satisfied.
• in the next payment cycle before match requirements (receipt of goods, invoiced price, purchase order price and quantity).

Standard inter-company payment terms for both trade and non-trade invoices are;

• 1.      end of month plus 15 days.
• 2.      Invoice date
• 3.      The last day of the month end

Trade Invoice is:

• 1.      The transaction is related to the company’s normal operations.
• 2.      The transaction is related to the month end operations
• 3.      The transaction is related to the company’s special operations.

Changes in allocation formulas due to an error must be corrected prior to the:

• a)     last calendar day of February
• b)     last business day in January
• c)      last business day in February