Which of the Following Statements Is True About Convenience Translations

question 36

Multiple Choice

Which of the following statements is true about convenience translations?

• A)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:

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, rent, and salaries for employees not directly involved in production.

Cost of Goods Sold

The immediate expenses linked with producing a company's sold goods, such as materials, labor, and production overhead.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Spreadsheet

A spreadsheet is a digital document that allows users to organize, analyze, and store data in tabular form, widely used for financial planning and calculations.