If There Are No Transactions in the Official Financing Account

question 99

Multiple Choice

If there are no transactions in the official financing account, it is likely that

• A)this country has a pegged exchange rate and persistent surpluses on its balance of payments.
• B)the central bank has pegged the exchange rate so that the current and capital accounts sum to zero.
• C)the exchange rate is being determined freely in the foreign- exchange market.
• D)there must be a disequilibrium in the foreign- exchange market.
• E)this country must not be engaging in international trade.

Understand the calculation and significance of interest on notes receivable.

Distinguish between different types of receivables and their classification on financial statements.

Identify the indicators and implications of uncollectible accounts.

Examine the methods of accounting for uncollectible accounts and their impacts.

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