In Accounting for Multinational Corporations

question 2

Multiple Choice

In accounting for multinational corporations,

• A)SFAS 109 requires companies to include taxes on repatriation of foreign earnings as a deferred tax asset.
• B)the deferral of foreign earnings is a temporary difference.
• C)SFAS 109 allows the parent to exclude taxes on repatriated foreign earnings if they will not be repatriated in the foreseeable future.
• D)a corporation with excess foreign tax credits will record a deferred tax liability.

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Definitions:

Procurement

The process of sourcing and acquiring goods and services needed by an organization to operate effectively.

Delivery Costs

Expenses associated with the transport of goods from the seller to the purchaser.

Receiving

The process of accepting, inspecting, and recording inbound shipments of goods or materials into a warehouse or facility.

Inwards Inspection

The process of examining materials or products upon arrival at a facility to ensure they meet required standards and specifications.