Investors Who Use Accounting Information to Guide Trading in Foreign

question 53

Multiple Choice

Investors who use accounting information to guide trading in foreign securities

• A)should carefully compare expenses, but not revenues to companies in the same industry in the United States.
• B)must adjust the numbers of foreign-based companies' financial statements and thoroughly understand the foreign environment.
• C)must contact the foreign CEO before any investment in stock occurs.
• D)should contact the foreign company's auditors to find out how much dividends will be paid.

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Definitions:

Elaboration Likelihood Model

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