In Accounting for Multinational Corporations

question 2

Multiple Choice

In accounting for multinational corporations,

• A)SFAS 109 requires companies to include taxes on repatriation of foreign earnings as a deferred tax asset.
• B)the deferral of foreign earnings is a temporary difference.
• C)SFAS 109 allows the parent to exclude taxes on repatriated foreign earnings if they will not be repatriated in the foreseeable future.
• D)a corporation with excess foreign tax credits will record a deferred tax liability.

---

Definitions:

Electrical Impulse

A sudden surge of energy in one direction, often used in the context of neurons firing and the transmission of signals through the nervous system.

Muscle Contraction

The process of generating tension within a muscle fiber through the actin and myosin filaments sliding past each other.

Wandering Baseline

A term used in electrocardiography to indicate an inconsistent or shifting baseline on the ECG trace, which can complicate the interpretation of cardiac rhythms.

Improper Grounding

Refers to the incorrect or inadequate connection of electrical equipment or circuits to the earth, leading to potential safety hazards.