Which of the following are issues when dealing with the financial statements of international firms?I) Many countries allow firms to set aside larger contingency reserves than the amounts allowed for U.S. firms.II) Many firms outside the U.S. use accelerated depreciation methods for reporting purposes, whereas most U.S. firms use straight-line depreciation for reporting purposes.III) Intangibles, such as goodwill, may be amortized over different periods or may be expensed rather than capitalized.IV) There is no way to reconcile the financial statements of non-U.S. firms to GAAP.
A) I and II
B) II and IV
C) I, II, and III
D) I, III, and IV
E) I, II, III, and IV

Question

Quizplus · Accepted Answer

Issues I, II, and III are valid concerns when dealing with international financial statements due to differences in accounting practices. However, IV is incorrect because there are methods to reconcile non-U.S. financial statements to GAAP.

Which of the Following Are Issues When Dealing with the Financial