Which of the Following Statements Is Correct

question 98

Multiple Choice

Which of the following statements is correct?

• A) There have been no significant observed differences in the capital structures of U.S.corporations in comparison to their German and Japanese counterparts.
• B) Different countries use essentially the same international accounting conventions with respect to reporting assets on a historical versus replacement cost basis.
• C) An analysis of both bankruptcy and equity reporting costs leads to the conclusion that U.S.firms should have more equity and less debt than firms in Japan and Germany.
• D) Equity monitoring costs are higher in the United States than in Japan and Germany.
• E) Debt monitoring costs are probably lower in the United States than in Japan and Germany.

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Definitions:

Foreign Currency

Currency used in a country other than one's own, representing the medium of exchange from foreign nations.

Government

The system or group of people governing an organized community, often a state, and the authority to make and enforce laws.

Calculators

Electronic or mechanical devices designed to perform mathematical operations, ranging from basic calculations to complex computations.

Export

The act of sending goods or services from one country to another country for sale or trade.