According to a Recent Survey by Ernst and Young, the Most

question 83

Multiple Choice

According to a recent survey by Ernst and Young, the most important tax issue that multinational enterprises now face is

• A)transfer pricing.
• B)choice of accounting method to use in preparing consolidated income statements when firms have subsidiaries in countries with different tax treatments of expense items.
• C)choice of accounting method to use in preparing consolidated income statements when firms have subsidiaries in countries with different tax treatments of income recognition.
• D)none of the above

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Definitions:

Negotiable

Capable of being bought, sold, or transferred to another party through endorsement or delivery.

Journal Entry

A basic record documenting a business transaction in an accounting system, used to transfer information to financial statements.

Bank Balance

The amount of money held in a bank account at a particular time, as recorded by the bank.

NSF Check

Stands for Non-Sufficient Funds Check, a check that cannot be processed due to insufficient funds in the account it was drawn on.