All of the following are correct statements about transfers between divisions located in countries with different tax rates EXCEPT that
A)differences in tax rates across countries complicate the determination of the appropriate transfer price.
B)many companies prefer to report more income in countries with low tax rates.
C)companies must pay income tax in the country where income is generated.
D)a decreasing number of transfers are between divisions located in different countries.

Question

Quizplus · Accepted Answer

The statement that "a decreasing number of transfers are between divisions located in different countries" is incorrect. While transfers between such divisions may be complicated by tax rate differences and reporting preferences, the number of such transfers is not necessarily decreasing.

All of the Following Are Correct Statements About Transfers Between