Translating Foreign Financial Statements into a Convenience Language

question 39

Multiple Choice

Translating foreign financial statements into a convenience language:

• A)eliminates all readability problems for a financial analyst.
• B)does not always clarify accounting terminology unique to a particular country.
• C)is easily and inexpensively done when the convenience language is English.
• D)is required for all multinational corporations.

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Definitions:

Cash Dividends

Payments made by a corporation to its shareholders from the company's profits.

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee but does not control it.

Statement of Cash Flows

A financial report summarizing the amount of cash and cash equivalents entering and leaving a company.

Investing Activities

Financial actions related to the purchase and sale of long-term assets and investments, which are reflected on the cash flow statement.