The globalization of business activity has resulted in which of the following?
A) Increased corruption and unethical behavior.
B) A uniform set of accounting rules in all countries.
C) The FASB and IASB working jointly on a project to converge accounting standards.
D) The requirement that U.S. firms use international accounting rules as of 2006.

Question

Quizplus · Accepted Answer

The globalization of business activity has resulted in the FASB (U.S. Financial Accounting Standards Board) and IASB (International Accounting Standards Board) working jointly on a project to converge accounting standards. This is to ensure that there is a common set of high-quality accounting standards that can be used globally. However, globalization has not necessarily resulted in increased corruption and unethical behavior, and while there have been efforts to harmonize accounting rules, there is not yet a uniform set of accounting rules in all countries. Additionally, while U.S. firms are required to follow International Financial Reporting Standards (IFRS) as of 2018, this is not the case for the earlier date mentioned in the option (2006).

The Globalization of Business Activity Has Resulted in Which of the Following