Asked by Nicholas Lalla on May 07, 2024
Verified
The ABC Co. hired an experienced accountant to reconcile the differences between the accounting policies and currencies of its various divisions. This tells us that the ABC Co. is a:
A) Corporation.
B) National firm.
C) Regional firm
D) Multinational firm.
E) Global proprietorship.
Multinational Firm
A business entity that operates in multiple countries beyond its home country, engaging in international trade or investment.
Accounting Policies
The specific principles, bases, conventions, rules, and practices applied by an entity in preparing and presenting financial statements.
- Clarify the notion of exchange rate risk and detail its various forms like transaction, translation, and economic exposure.
Verified Answer
GG
Glenda GregoryMay 11, 2024
Final Answer :
D
Explanation :
The need to reconcile differences between accounting policies and currencies suggests that ABC Co. operates in multiple countries, which is characteristic of a multinational firm.
Learning Objectives
- Clarify the notion of exchange rate risk and detail its various forms like transaction, translation, and economic exposure.
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