The Internet Has Eased International Transactions in All of the Following

question 27

Multiple Choice

The Internet has eased international transactions in all of the following ways except

• A) allowing service companies to outsource operations to low-cost-labor countries.
• B) reducing the amount of investment needed to expand into foreign markets.
• C) substantially reducing the liability of foreignness.
• D) increasing the efficiency of networking capability among business.

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Definitions:

Normal Credit Balance

The expected balance on the credit side of an account, indicating an increase in liabilities, revenue, or equity.

Sales Discounts

Reductions in the selling price offered by a seller to encourage prompt payment by the buyer.

Sales Returns

Transactions involving the return of goods by customers, which reduce the total sales revenue.

Discount Period

The time frame within which a buyer can pay less than the full amount due on an invoice due to early payment incentives offered by the seller.