Which of the Following Is Not a Problem Caused by Diverse

question 54

Multiple Choice

Which of the following is not a problem caused by diverse accounting practices across countries?

• A) Preparation of consolidated financial statements.
• B) Gaining access to foreign capital markets.
• C) Lack of comparability of financial statements between companies in the same country.
• D) Cost and expertise required of accounting staff who prepare consolidated financial statements.
• E) Need for a company to maintain multiple sets of accounting records.

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Definitions:

Japanese Tourists

Visitors from Japan who travel to other countries for leisure, business, or other purposes.

Flexible Exchange Rates

A system where the value of a country's currency is allowed to fluctuate according to the foreign exchange market without direct intervention by the country's government.

U.S. Dollar

The official currency of the United States, widely used as a standard of exchange in international markets and as a reserve currency worldwide.

Income

The money received by a person or entity for labor, services rendered, investment returns, or other sources during a specific period.