Which of the Following Is the Main Source of Financial

question 14

Multiple Choice

Which of the following is the main source of financial risk?

• A)Foreign operations and exchange rate volatility
• B)Corporate debt and interest rate volatility
• C)Volatility in world oil prices
• D)Fluctuating share prices

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Definitions:

Capital

Represents the financial resources used by a business to fund its operations and growth, often in the form of money, assets, or equity.

Income Summary

An account to which the revenues and expenses are transferred in order to close the books and transfer the net balance to owner’s equity.

Real Account

A permanent account in accounting that tracks the balances of assets, liabilities, and equity, and is not closed at the end of the accounting period.

Cash

Refers to money in the form of coins or banknotes, especially that possessed by a person or business for transactions.