Which of the Following Is True About Reconciling Foreign Financial

question 15

Multiple Choice

Which of the following is true about reconciling foreign financial statements to U.S.GAAP?

• A)A 10% increase in income when converting to U.S.GAAP means that stockholder's equity will increase by 10% after converting to U.S.GAAP.
• B)A 10% increase in income when converting to U.S.GAAP means that stockholder's equity will increase by 20% after converting to U.S.GAAP.
• C)A 10% increase in income when converting to U.S.GAAP means that stockholder's equity will decrease by 10% after converting to U.S.GAAP.
• D)None of the above statements is true.