Which of the Following Is Not a Problem Caused by Diverse

question 54

Multiple Choice

Which of the following is not a problem caused by diverse accounting practices across countries?

• A) Preparation of consolidated financial statements.
• B) Gaining access to foreign capital markets.
• C) Lack of comparability of financial statements between companies in the same country.
• D) Cost and expertise required of accounting staff who prepare consolidated financial statements.
• E) Need for a company to maintain multiple sets of accounting records.

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Definitions:

Equivalent Units

A measure used in cost accounting to express the amount of work done on incomplete units in terms of complete units.

First-in

Commonly part of the term "First-in, First-out (FIFO)", a method used in inventory management where the oldest stock is sold first.

Labor

Work performed by humans that is used in the production of goods and services.

Equivalent Unit

A metric in cost accounting that quantifies the effort invested in partially finished units by equating it to the output of completely finished units.