Complicating Factors for a Global Business Include

question 143

Multiple Choice

Complicating factors for a global business include:

• A)what is legal in one country may not be legal in another country.
• B)what is ethical in one country may not be ethical in another country.
• C)a foreign government threatening to take over the company's plant.
• D)all of the above.

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Definitions:

Tax Effect Method

An accounting approach for recognizing the income tax consequences of transactions and events in the same period as the transactions and events.

Income Tax Expense

This is the amount of expense that a company recognizes in its financial statements for the income tax due on its taxable income.

Current Tax Liability

The amount of income taxes a company is obligated to pay within the next year.

Accounting Standards

Authoritative standards and principles that guide financial accounting and reporting practices for businesses and organizations.