Question

Which statement is correct as it relates to diverse accounting practices across countries?

A. U.S. GAAP is acceptable worldwide wherever IFRS has not been adopted.

B. Translating financial statements of various currencies into one common currency for consolidation purposes does not resolve the problem of diversity of accounting practices across countries.

C. To have stock listed on a U.S. stock exchange, all financial statements submitted to the SEC must be prepared either using U.S. GAAP or using IFRS.

D. Stock analysts specializing in industry coverage can compare financial statements regardless of various national or international accounting standards used by companies being compared.

E. Gaining access to foreign capital markets is relatively easy and inexpensive once the financial statements are converted to the local currency of the country where the financing is desired.

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Answer #1

Correct answer - B.Translating financial statements of various currencies into one common currency for consolidation purposes does not resolve the problem of diversity of accounting practices across countries.

All other statements are incorrect.

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