Which of the Following Is Not a True Statement Regarding

question 55

Multiple Choice

Which of the following is not a true statement regarding SFAS No. 8?

• A)SFAS was faithful to the historical cost accounting model, but from an economic viewpoint, it produced illogical results.
• B)SFAS No. 8 required the temporal method of translation.
• C)In empirical studies made of the economic impact of SFAS No. 8 on American multinational enterprises, only foreign exchange risk and management policies regarding hedging of foreign currency exposures were found to have any possible impact.
• D)SFAS No. 8 was consistent with the foreign currency orientation.

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Definitions:

Balance Sheet

A balance sheet is a financial statement that presents a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Periodic Inventory System

An inventory management method where updates to inventory records are made at specific intervals, not continuously.

Inventory Account

An account on the balance sheet representing the total cost of goods a company intends to sell to customers, including raw materials, work-in-progress, and finished goods.

Period-End

Marks the conclusion of an accounting period, at which point various accounting entries are finalized, and reports are prepared.