The SEC Currently Requires Foreign Companies That List Shares on U.S.exchanges

question 36

Multiple Choice

The SEC currently requires foreign companies that list shares on U.S.exchanges to provide

• A) both complete U.S.GAAP financial statements and a reconciliation of their reported income under non-U.S.GAAP to the reported income under U.S.GAAP.
• B) complete U.S.GAAP financial statements or a reconciliation of their reported income under non-U.S.GAAP to reported income under U.S.GAAP.
• C) only complete U.S.GAAP financial statements;the SEC will not accept under any circumstances only a reconciliation of an entity's reported income under non-U.S.GAAP to reported income under U.S.GAAP.
• D) only a reconciliation of their reported income under non-U.S.GAAP to reported income under U.S.GAAP;the SEC will not accept under any circumstances only a complete set of U.S.GAAP financial statements.

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Definitions:

Contract Curve

Represents the set of optimal allocations of resources between two agents in an economy, where no party can be made better off without making the other party worse off.

Utilities Possibilities Frontier

A curve depicting all possible allocations of goods and services that maximize two or more parties' utility under a given condition.

Utilities Possibilities Frontier

A graph that shows the maximum satisfaction levels of two or more agents in an economy based on the allocation of resources.

Marginal Utility

The change in satisfaction or utility an individual gains from consuming an additional unit of a good or service.