Question

Which U.S. accounting practice would be the hardest to defend internationally? type please no hand writing

Answer 1

The US generally follows the US GAAP for their accounting practices. In general under the US GAAP, costs for service companies are allocated all within operating costs. This means that cost of goods sold are all nullified in such a situation. This would be unrealistic in other countries as there is nothing called a pure service company and it is anyways difficult to sell that all costs would be part of selling, general and admin costs. Thus the nullification of cost of goods sold would not be believable in other countries globally.