The Benefits of a Single Set of Accounting Standards Used

question 51

Multiple Choice

The benefits of a single set of accounting standards used around the world would include all of the following except:

• A) They would eventually save companies considerable money in accounting fees.
• B) They would prevent competitors from acquiring each other.
• C) They would allow easier comparisons by analysts and investors.
• D) They would facilitate access to foreign capital markets.

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Definitions:

Stock Splits

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, although the overall value of the company does not change.

Market Price

The present cost at which services or assets are offered for trade in the market.

Extra Dividend

A one-time payment made by a company to its shareholders, in addition to any regular dividends.

Liquidating Dividend

A payment made by a corporation to its shareholders during its liquidation, distributing the remaining assets.