Which Statement Is Correct as It Relates to Diverse Accounting

question 39

Multiple Choice

Which statement is correct as it relates to diverse accounting practices across countries?

• A) Gaining access to foreign capital markets is relatively easy and inexpensive once the financial statements are converted to the local currency of the country where the financing is desired.
• B) U.S. GAAP is acceptable worldwide wherever IFRS has not been adopted.
• C) To have stock listed on a U.S. stock exchange, all financial statements submitted to the SEC must be prepared either using U.S. GAAP or using IFRS.
• D) Stock analysts specializing in industry coverage can compare financial statements regardless of various national or international accounting standards used by companies being compared.
• E) Translating financial statements of various currencies into one common currency for consolidation purposes does not resolve the problem of diversity of accounting practices across countries.

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Definitions:

Involuntary Processes

Bodily functions and responses that occur without conscious control, such as breathing and heart rate.

Hindbrain

The posterior part of the brain comprising structures such as the cerebellum and brainstem, responsible for fundamental life functions.

Medulla

A section of the brainstem responsible for regulating vital bodily functions such as heart rate and breathing.

Neurons

Specialized cells of the nervous system that transmit information through electrical and chemical signals.