How does the lack of global accounting standards affect U.S.-based companies?
A) Unethical U.S. companies will use whichever standard creates the most benefit for them.
B) Using standards in countries where they do business allows for greater opportunity in the international market.
C) Reporting performance in a variety of consolidated statements for global affiliates will minimize understanding, thereby minimizing attempted leveraged buyouts.
D) There may be inconsistent and conflicting information that creates confusion for stakeholders.
E) Assets can be values according to one standard, revenue and debt according to other standards, in an overall goal of presenting positive performance levels.

Question

Quizplus · Accepted Answer

The lack of global accounting standards can lead to inconsistent and conflicting information, creating confusion for stakeholders. This can affect U.S.-based companies as they may have global affiliates and rely on information from different sources. This can also make it difficult to compare performance between companies from different countries.

How Does the Lack of Global Accounting Standards Affect U