Which of the Following Statements Is Correct

question 4

Multiple Choice

Which of the following statements is correct?

• A) There have been no significant observed differences in the capital structures of S.A.corporations in comparison to their Swaziland and Namibia counterparts.
• B) Different countries use essentially the same international accounting conventions with respect to reporting assets on a historical versus replacement cost basis.
• C) An analysis of both bankruptcy and equity reporting costs leads to the conclusion that S.A.firms should have more equity and less debt than firms in Namibia and Swaziland.
• D) Equity monitoring costs are higher in South Africa than in Namibia and Swaziland.
• E) Debt monitoring costs are probably lower in South Africa than in Namibia and Swaziland.

---

Definitions:

Customer Classification Departments

Divisions within a company that segment customers based on various criteria to tailor marketing and service delivery.

Mercy Medical Center

A healthcare institution providing medical care and services; without specific details, this can refer to any one of several hospitals by the same name in different locations.

Rule Utilitarianism

An ethical theory that suggests the rightness or wrongness of an action should be judged by the rules that are followed, and that these rules should be chosen based on the utility or happiness they produce.

Act Deontology

A form of deontological ethics focused on the inherent morality of individual actions, regardless of their outcomes.