Which of the Following Are Issues When Dealing with the Financial

question 70

Multiple Choice

Which of the following are issues when dealing with the financial statements of international firms?I) Many countries allow firms to set aside larger contingency reserves than the amounts allowed for U.S. firms.II) Many firms outside the U.S. use accelerated depreciation methods for reporting purposes, whereas most U.S. firms use straight-line depreciation for reporting purposes.III) Intangibles, such as goodwill, may be amortized over different periods or may be expensed rather than capitalized.IV) There is no way to reconcile the financial statements of non-U.S. firms to GAAP.

• A) I and II
• B) II and IV
• C) I, II, and III
• D) I, III, and IV
• E) I, II, III, and IV

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Definitions:

Natural Gas

is a fossil fuel consisting primarily of methane and other hydrocarbons, used as a source of energy for heating, cooking, and electricity generation, as well as a feedstock for chemical manufacture.

Oil Fuel

is a type of fuel derived from the refinement of crude oil used primarily for heating, transportation, and generating electricity.

Refined Product

A substance that has been processed and purified from its raw state to enhance its utility or value.

Coal

A combustible black or brownish-black sedimentary rock made largely of carbon and hydrocarbons, used as a fossil fuel for producing energy.