All of the Following Statements About Multinational Companies Are True

question 114

Multiple Choice

All of the following statements about multinational companies are true EXCEPT:

• A)Management accountants in multinational companies need to budget in different currencies.
• B)Multinational companies earn revenues and incur expenses in one currency.
• C)Management accountants in multinational companies need to budget for foreign exchange rates.
• D)Besides currency issues,multinational companies need to understand the political,legal and,in particular,economic environments of the different countries in which they operate.

Grasp the effects of globalization and social change on world development.

Define transnational communities and their roles in the modern world.

Understand the concepts of perfect competition and market equilibrium.

Analyze the impact of fixed and variable costs on firm's production decisions.

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Definitions:

Sales

The total amount of goods or services sold by a company, contributing to its revenue.

Balance Sheet

A financial statement that presents a company's assets, liabilities, and shareholders' equity at a specific point in time.

Income Statement

A financial statement that shows a company's revenues, expenses, and net income or loss over a specific period.

Acid Test Ratio

A financial metric that evaluates a company's ability to pay off its current liabilities with quick assets like cash, marketable securities, and accounts receivable.