The Operations of Silver Lights Inc

Multiple Choice

The operations of Silver Lights Inc. incorporated in the U.S. are spread out in Ireland, Finland, and Chile. Which of the following statements is true about the operations of Silver Lights Inc.?

A) The financial statements of Silver Lights must be prepared in local currencies of the branch countries for consolidation purposes.
B) The external auditor of Silver Lights must be proficient in U.S. auditing and financial reporting standards to audit the operations of branch offices.
C) Silver Lights Inc. must give credit for the corporate tax paid as per U.S. tax laws to provide relief from double taxation.
D) The transfer of parts between U.S. operations and other branches should be at the highest acceptable price most profitable to Silver Lights Inc. keeping in view the rate of tax and tax authorities in respective nations.