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:

Strategic Plans

Long-term organizational plans that outline goals, objectives, and actions designed to achieve a competitive advantage and meet stakeholders' expectations.

Financial Plans

Detailed documents that outline an individual's or organization's present financial situation, future goals, and strategies to achieve those goals, including budgeting, investments, and risk management.

Projections

Estimates or forecasts of future financial performance or trends, often based on current data and assumptions.

Debt

Debt represents money or goods that one party owes to another under the condition that it is to be repaid at a future date, often with interest.