Identify the Year the SEC Will Require American Companies to Switch

question 27

Multiple Choice

Identify the year the SEC will require American companies to switch from U.S.-based GAAP to IFRS as the basis for preparing financial statements.

• A)2016
• B)2018
• C)2020
• D)At this point it is unclear when the SEC will require American companies to implement IFRS,though the SEC remains committed to requiring U.S.companies use IFRS at some point.

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Definitions:

Profitability

Profitability is a measure of the efficiency and financial success of a business, indicating the degree to which a company or project generates more revenue than its costs.

Price-Earnings Ratio

A valuation metric for stocks, calculated by dividing the current market price of a stock by its earnings per share (EPS).

Earnings Per Share

A financial ratio that measures the portion of a company's profit allocated to each outstanding share of common stock, indicating the company's profitability on a per-share basis.

Dividends Per Share

The amount of declared dividends for every share of common stock, indicating the dividend payout to shareholders.