Which of the Following Is Not a True Statement Regarding

question 55

Multiple Choice

Which of the following is not a true statement regarding SFAS No. 8?

• A)SFAS was faithful to the historical cost accounting model, but from an economic viewpoint, it produced illogical results.
• B)SFAS No. 8 required the temporal method of translation.
• C)In empirical studies made of the economic impact of SFAS No. 8 on American multinational enterprises, only foreign exchange risk and management policies regarding hedging of foreign currency exposures were found to have any possible impact.
• D)SFAS No. 8 was consistent with the foreign currency orientation.

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Definitions:

Cash

A form of liquid asset that includes currency, coins, and balances in bank accounts, used by businesses to carry out transactions.

Common Stock

Equity ownership in a corporation, with holders usually having voting rights and receiving dividends variable with the company’s profitability.