De Facto Harmonization Refers to the Process Of

question 44

Multiple Choice

De facto harmonization refers to the process of:

• A) making accounting practices consistent across countries.
• B) making accounting regulations consistent internationally.
• C) resolving accounting differences through litigation.
• D) creating one set of accounting standards.

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Definitions:

Compound Interest

The addition of interest to the principal sum of a loan or deposit, where interest also earns interest from then on.

Simple Interest

Simple interest is interest calculated only on the principal amount, or on that portion of the principal amount which remains unpaid.

Present Value

The present value of a sum of money or series of cash flows expected in the future, discounted at a certain rate of return.

Amortized Loan

A loan repaid in equal periodic amounts (or “killed off” over time).