How Does the Lack of Global Accounting Standards Affect U

question 6

Multiple Choice

How does the lack of global accounting standards affect U.S.-based companies?

• A) Unethical U.S. companies will use whichever standard creates the most benefit for them.
• B) Using standards in countries where they do business allows for greater opportunity in the international market.
• C) Reporting performance in a variety of consolidated statements for global affiliates will minimize understanding, thereby minimizing attempted leveraged buyouts.
• D) There may be inconsistent and conflicting information that creates confusion for stakeholders.
• E) Assets can be values according to one standard, revenue and debt according to other standards, in an overall goal of presenting positive performance levels.

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Definitions:

Inferior

Anatomical term meaning below or closer to the feet; also called caudal.

Chemical Reactions

Processes that involve the rearrangement of molecular or ionic structure of substances, resulting in the formation of one or more new products.

Matter

Anything that occupies space and has mass, composed of atoms and molecules and existing in solid, liquid, gas, or plasma states.

Cell Nucleus

The organelle in a cell that contains most of the cell's genetic material, responsible for regulating cell activities.