A study by Speidell and Bavishi (1992) found that when accounting statements of foreign firms were restated on a common accounting basis,
A) the original and restated P/E ratios were quite similar.
B) the original and restated P/E ratios varied considerably.
C) most variation was explained by tax differences.
D) most firms were consistent in their treatment of goodwill.

Question

Quizplus · Accepted Answer

The study found that when accounting statements of foreign firms were restated on a common accounting basis, the original and restated Price-to-Earnings (P/E) ratios varied considerably, indicating significant differences in accounting practices across countries.

A Study by Speidell and Bavishi (1992) Found That When