Long-Term Capital Flows Reflect the Following Factors EXCEPT

question 59

Multiple Choice

Long-term capital flows reflect the following factors EXCEPT:

• A) short-term interest rate differentials.
• B) fundamental economic expectations.
• C) growth prospects.
• D) perceptions of political stability.

---

Definitions:

Bad Debt Expense

An expense account reflecting the cost of accounts receivable that a company does not expect to collect and has written off.

Allowance Method

An accounting technique used to estimate uncollectible accounts receivable and record bad debts expense.

Percent of Sales Method

A financial forecasting technique that estimates certain balance sheet and income statement items as a fixed percentage of projected sales.

Uncollectible Expenses

Costs that a business incurs from credits extended to customers that are not expected to be paid back, often recognized as bad debt expense.