Which of the Following Is Theleast Likely Means a Company

question 54

Multiple Choice

Which of the following is theleast likely means a company might choose to meet the needs of international investors?

• A) Translation of financial statements or annual reports into the language of the user.
• B) Denomination of the financial statements in the currency of the country where the financial statements will be used.
• C) Partial or complete restatement of financial statements to the accounting principles of the financial statement users' country.
• D) Mutual recognition in which one country accepts the financial statements of another country for regulatory purposes such as listing on stock exchanges or filing annual reports.

---

Definitions:

Stated Interest Rate

The interest rate specified on a loan or investment agreement, not accounting for compounding or fees.

Prevailing Rate

The current interest rate or wage rate for a particular industry or geographic location.

Present Value

The value today of a sum of money or cash flows expected in the future, discounted at a certain rate of return.

Maturity Value

The amount that will be paid out or received, including principal and interest, upon the expiration or maturity of a financial instrument.