Which of the Following Is a Commonly Cited Disadvantage of Having

question 8

Multiple Choice

Which of the following is a commonly cited disadvantage of having a new unified set of accounting standards?

• A)Acquiring foreign companies would become a more confusing proposition.
• B)Corporations may find themselves more susceptible to lawsuits due to the principles-based system.
• C)Time and money would not be saved in accessing capital markets abroad.
• D)The SEC would be dissolved if international accounting standards were adopted.

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Definitions:

Legal Problems

Issues or disputes that arise in the context of the law, requiring formal resolution through legal processes or litigation.

Poor Communication Choices

Ineffective or inappropriate communication methods that fail to convey the intended message or negatively impact relationships.

Organization

An entity, such as a company, institution, or association, comprised of multiple people working towards common goals.

Business Document

An official record that communicates or records business activities, transactions, or decisions.