New Year Special - 75% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: ac75sure

AB and CD are competitors supplying components to the car manufacturing industry.

AB and CD are competitors supplying components to the car manufacturing industry. AB operates in Country X and CD operates in Country Y. Both entities were incorporated on the same day, are the same size and prepare financial statements to 31 March each year using international accounting standards.

Which of the following statements taken individually would limit the usefulness of the comparison of the return on capital employed ratio between the two entities?

A.

The corporate tax rate is 25% in Country X and 40% in Country Y.

B.

The average rate of inflation is 3% in Country X and 10% in Country Y.

C.

The average rate of borrowing is 2% in Country X and 7% in Country Y.

D.

The currency is Dollar in Country X and Krona in Country Y.

F2 PDF/Engine
  • Printable Format
  • Value of Money
  • 100% Pass Assurance
  • Verified Answers
  • Researched by Industry Experts
  • Based on Real Exams Scenarios
  • 100% Real Questions
buy now F2 pdf
Get 75% Discount on All Products, Use Coupon: "ac75sure"