A Study by Speidell and Bavishi (1992) Found That When

question 34

Multiple Choice

A study by Speidell and Bavishi (1992) found that when accounting statements of foreign firms were restated on a common accounting basis,

• A) the original and restated P/E ratios were quite similar.
• B) the original and restated P/E ratios varied considerably.
• C) most variation was explained by tax differences.
• D) most firms were consistent in their treatment of goodwill.

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Definitions:

Implied-In-Fact Contract

A contract formed by the actions and circumstances of the parties involved, rather than written or spoken words.

Licensing Statute

Legislation that specifies the requirements and conditions for obtaining a professional or business license to legally operate.

Illegal And Unenforceable

Describes contracts that cannot be legally upheld or enforced due to the inclusion of illegal acts or elements.

Usury

The lending of money at an exorbitant or unlawful rate of interest.