Which of the Following Statements Is True About Convenience Translations

question 2

Multiple Choice

Which of the following statements is true about convenience translations?

• A)Convenience translation eliminates the problems associated with comparing financial statements in the same language.
• B)Convenience translation means that a company converts both the language and the currency of its financial statements for the convenience of potential investors.
• C)Convenience translations require reconciliation to U.S.GAAP, U.S.format, as well as conversion to English.
• D)None of the above statements is true.

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Definitions:

Material Alteration

The major alteration of an agreement that has the effect of discharging the contract and replacing it with another.

Renegotiate

The process of revising the terms and conditions of an existing contract through mutual agreement between the involved parties.

Amend

To alter, modify, or add to a legal document or legislative bill.

Payment Clause

A contractual provision that outlines the specific terms regarding the payment schedule, methods, amounts, and conditions under a contract.