Unlike Domestic Contracts,international Contracts Are More Likely to Involve Special

question 37

Multiple Choice

Unlike domestic contracts,international contracts are more likely to involve special problems,such as

• A)complexities involving transportation,insurance,and financing.
• B)the use of carriers,insurers,and banks.
• C)the interference of foreign governments and their agents.
• D)the usual buyer-seller language barrier.
• E)those created by export houses and freight forwarders.

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Definitions:

Accruals

Accounting method that records revenues and expenses when they are earned or incurred, regardless of when the cash transaction occurs.

Indirect Method

A method used to prepare the cash flow statement where net income is adjusted for changes in balance sheet accounts to calculate the cash from operating activities.

Term Deposit

A bank deposit with a fixed term and interest rate, where the money must remain deposited for a specified duration, incurring penalties for early withdrawal.

Cash Equivalent

Short-term, highly liquid investments that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value.