Which of the Following Would NOT Be a Reason to Obtain

question 7

Multiple Choice

Which of the following would NOT be a reason to obtain a greater understanding of accounting practices in other nations?

• A) Financial results are disclosed in different currencies.
• B) One needs to be aware of differing disclosure requirements from nation to nation, as this impacts the preparation of financial statements.
• C) Income-smoothing may have affected a foreign subsidiary's results; such smoothing practices are not permitted in North America.
• D) Departures from the historical cost principle may be possible in other nations.

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Definitions:

Fixed Assets

Long-term assets used in the operation of a business, not expected to be converted into cash within a year, such as buildings and machinery.

Dividend Policies

Strategies and guidelines that a company uses to decide the size and pattern of cash distributions to its shareholders over time.

Debt Policies

Guidelines or strategies that govern how a company or government manages its debt, including borrowing practices and repayment schedules.

Financial Plan

A document detailing an individual's or organization's current financial status and long-term monetary goals, along with strategies to achieve those goals.