Which of These Is a Disadvantage of a Country Adopting

question 27

Multiple Choice

Which of these is a disadvantage of a country adopting international accounting standards compared to the country developing its own standards?

• A)Standards by their nature must be general and involve compromises.
• B)It will increase accounting and reporting costs for multinational companies.
• C)It will reduce the comparability of different countries' financial reports.
• D)All are disadvantages.

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Definitions:

Customer Account

An account that records all transactions between a business and its customers, including purchases, payments, and credits.

Subsidiary Ledgers

Detailed ledgers that contain financial information on specific accounts or areas, such as accounts receivable or payable, supporting the general ledger.

Accounts Receivable

Money owed to a business by its clients for goods or services that have been delivered but not yet paid for.

Accounts Payable

A liability account on a company’s balance sheet representing money owed to creditors for goods and services purchased on credit.