A Type of Bond That Is Issued and Traded Outside

question 18

Multiple Choice

A type of bond that is issued and traded outside the United States and which is denominated in U.S. dollars but is not registered with the SEC is

• A) an issue of the World Bank.
• B) a Yankee bond.
• C) an issue of the InterAmerican Bank.
• D) a Eurodollar bond.

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Definitions:

Prior Period Adjustment

Adjustments made to amend previously issued financial statements for errors or changes in accounting principles.

Depreciation Expense

The systematic allocation of the cost of tangible assets over their useful lives, reflecting wear and tear or obsolescence.

Loss Recognition

The accounting principle of acknowledging and recording a loss in the financial statements when it is realized or when there is no longer any doubt about its occurrence.

Uncollectible Accounts

Debts owed to a company that are deemed uncollectable and written off as a bad debt expense.