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If Shana's Company Decides to Open Another Company in France

question 15

Multiple Choice

If Shana's company decides to open another company in France but centralizes its management in the United States, it would be considered a ________.


Definitions:

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life.

Interest Expense

The cost incurred by an entity for borrowed funds; interest expense is often deductible for the borrower for tax purposes.

Inflation

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.

Stockholders' Equity/Total Assets

A ratio expressing the proportion of a company's assets that are financed by shareholders' equity.

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