Which of the Following Are Issues When Dealing with the Financial

question 70

Multiple Choice

Which of the following are issues when dealing with the financial statements of international firms?I) Many countries allow firms to set aside larger contingency reserves than the amounts allowed for U.S. firms.II) Many firms outside the U.S. use accelerated depreciation methods for reporting purposes, whereas most U.S. firms use straight-line depreciation for reporting purposes.III) Intangibles, such as goodwill, may be amortized over different periods or may be expensed rather than capitalized.IV) There is no way to reconcile the financial statements of non-U.S. firms to GAAP.

• A) I and II
• B) II and IV
• C) I, II, and III
• D) I, III, and IV
• E) I, II, III, and IV

---

Definitions:

Tranquilizer

A drug used to reduce tension or anxiety, often by depressing nervous system activity.

First-Generation Neuroleptic

A class of antipsychotic drugs developed in the 1950s, used primarily to treat schizophrenia and other severe mental disorders.

Thorazine

A medication primarily used to treat psychotic disorders such as schizophrenia, known chemically as chlorpromazine.

Clozaril

A brand name for clozapine, an antipsychotic medication used to treat schizophrenia when other treatments have failed.