If a Company Is a Multinational Company with Operations in Several

question 91

Multiple Choice

If a company is a multinational company with operations in several different countries,one way to achieve comparability of historical-cost based ROIs for facilities in different countries is to

• A)restate the results of operations using the cash basis method of accounting.
• B)use GAAP for all reporting and calculations.
• C)restate the results of all operations in dollars.
• D)identify the rate of inflation in the most inflationary division and restate the other divisions' results using that rate.
• E)do nothing,the ROIs are comparable without adjustments.

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Definitions:

Major Airlines

Refers to the largest and most significant airlines operating in the aviation industry, often recognized by their extensive international and domestic flight operations and substantial fleet size.

Systematic Risk

The risk inherent to the entire market or market segment that cannot be eliminated through diversification.

General Health

A broad term referring to the overall physical and mental condition and well-being of an individual or population.

Unsystematic Risk

The risk of price change due to the unique circumstances of a specific security, as opposed to the overall market.