In 2014, Canada Imported $2 Billion in Computers

question 31

Multiple Choice

In 2014, Canada imported $2 billion in computers. As a result of these imports, Canadian consumers had a ________ variety of computers to choose from and likely paid a ________ price than if the computers were produced in Canada.

• A) larger, lower
• B) larger, higher
• C) smaller, lower
• D) smaller, higher

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Definitions:

Current-Rate Method

A method used in translating the financial statements of foreign subsidiaries, where all assets and liabilities are translated at the current exchange rate.

Retained Earnings

The portion of a company's profit that is held or retained and not paid out as dividends to shareholders, often used for investment in the business, debt reduction, or to shore up the balance sheet.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, obsolescence, or a decline in value.

Current-Rate Method

A method of foreign currency translation where all financial statements are converted at the current exchange rate at the time of reporting, affecting balance sheet and income statement items.