Suppose There Is a Rise in the World Price of Canada's

question 118

Multiple Choice

Suppose there is a rise in the world price of Canada's imports. If the Canadian demand for imports is inelastic, the demand for foreign exchange will and the Canadian dollar will .

• A)rise; appreciate
• B)fall; and remain constant
• C)fall; depreciate
• D)fall; appreciate
• E)rise; depreciate

Grasp the implications of research and development costs on financial reporting.

Understand the concept of return on assets and how it is affected by changes in asset values.

Understand how to calculate and interpret the return on assets.

Identify and understand the sections of the statement of cash flows, specifically the classification of cash flows associated with long-lived assets.

---

Definitions:

Specific Gravity

A measure of the density of a substance compared to the density of water at a specified temperature.

Urinometer

A device used to measure the specific gravity of urine, an indicator of hydration and kidney function.

Glucose

A simple sugar that is an important energy source in living organisms and is a component of many carbohydrates.

Urethra

A tube that connects the urinary bladder to the urinary meatus for the removal of fluids from the body.