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:

Biological Conditions

Refer to physical or physiological states that affect the living organisms' bodily functions.

Limbic System

A complex system of nerves and networks in the brain, involved in emotions and drives, such as fear, pleasure, and anger.

Emotional Memories

Memories strongly influenced by emotions, which can alter the recall's intensity and accuracy.

Sense of Smell

A sensory function provided by the olfactory system, allowing individuals to perceive and differentiate odors.