The SEC Currently Requires Foreign Companies That List Shares on U.S

question 23

Multiple Choice

The SEC currently requires foreign companies that list shares on U.S. exchanges to provide

• A) both complete U.S. GAAP financial statements and a reconciliation of their reported income under non-U.S. GAAP to the reported income under U.S. GAAP.
• B) only complete U.S. GAAP financial statements; the SEC will not accept under any circumstances only a reconciliation of an entity's reported income under non-U.S. GAAP to reported income under U.S. GAAP.
• C) complete U.S. GAAP financial statements or a reconciliation of their reported income under non-U.S. GAAP to reported income under U.S. GAAP.
• D) only a reconciliation of their reported income under non-U.S. GAAP to reported income under U.S. GAAP; the SEC will not accept under any circumstances only a complete set of U.S. GAAP financial statements.

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Definitions:

Cultural Intelligence

The capability to relate and work effectively across cultures, recognizing and adapting to cultural differences.

Unfamiliar Culture

A culture with customs, beliefs, and practices that are not known or experienced by an individual, often leading to new learning and adaptation challenges.

Emotional Intelligence

The ability to recognize, understand, manage, and use one’s own emotions positively to communicate effectively, empathize with others, overcome challenges, and defuse conflict.

Cultural Intelligence

The capability to function and manage effectively in culturally diverse settings.