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:

Materials Ledger

A detailed record that tracks the quantity and cost of materials on hand.

Work in Process Account

An account used to record the costs associated with incomplete products in the manufacturing process.

Cost Ledger

A subsidiary ledger that records individual costs associated with specific cost centers or cost objects.

Job Order Cost System

A job order cost system is an accounting method that assigns costs to specific production jobs, enabling precise tracking of the cost of materials, labor, and overhead for each job.