How Would a Company Decide Which Foreign Languages Will Be

question 29

Multiple Choice

How would a company decide which foreign languages will be used to present its financial statements?

• A)Determine which language is closest to the local language so that translation is less costly.
• B)Choose the language based on which countries provide the greatest potential source of funds.
• C)Follow the language requirements of its local accounting regulatory agency.
• D)Select the language of the most populous country in its region of the world.

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Definitions:

Consumer Price Index

An index measuring the change in the price level of a basket of consumer goods and services purchased by households.

Basket

A collection of goods, services, or financial instruments grouped together for the purpose of analysis, comparison, or investment.

CPI

Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to estimate inflation.

West Region

A term that could refer to the western part of a country, area, or specified region, often defined by geographic, administrative, or socioeconomic criteria.