The Generally Accepted Method for Consolidating the Financial Reports of an MNC

question 76

Multiple Choice

The generally accepted method for consolidating the financial reports of an MNC from the 1930s to 1975 was

• A)current/noncurrent method.
• B)monetary/nonmonetary method.
• C)temporal method.
• D)current rate method.

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Definitions:

After-Tax Salvage Value

The after-tax salvage value is the net value of a depreciated asset at the end of its useful life, after accounting for taxes on any difference between the sales price and the book value of the asset.

Straight-Line Depreciation

A technique for distributing the expense of a physical asset evenly across its lifespan in identical yearly sums.

Tax Rate

The percentage at which an individual or corporation is taxed, often varying by income level, legal entity, or country.

CCA Class

In Canadian tax law, refers to the classification of depreciable property for purposes of calculating capital cost allowance, which is a type of depreciation for tax purposes.