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

question 54

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 options

---

Definitions:

Lease Payments

The payments made under a lease agreement to the lessor for the use of an asset over a specified period.

Guaranteed Rate

A predetermined interest rate assured by a lender or issuer to the borrower or investor over a certain period.

Discount Factor

A multiplier used in financial calculations to determine the present value of future cash flows or payments.

Profitability Index

A financial metric comparing the present value of future cash flows generated by a project to its initial investment cost, used in capital budgeting.