Spontaneously Generated Funds Are Generally Defined as Follows

question 7

Multiple Choice

Spontaneously generated funds are generally defined as follows:

• A) Assets required per dollar of sales.
• B) A forecasting approach in which the forecasted percentage of sales for each item is held constant.
• C) Funds that a firm must raise externally through borrowing or by selling new common or preferred stock.
• D) Funds that arise out of normal business operations from its suppliers,employees,and the government,and they include spontaneous increases in accounts payable and accruals.
• E) The amount of cash raised in a given year minus the amount of cash needed to finance the additional capital expenditures and working capital needed to support the firm's growth.

Calculate the translated amounts for capital assets, considering acquisition dates, useful life, and rate changes.

Analyze the impact of exchange rate changes on the translation of capital assets and related amortization.

Distinguish between current and non-current assets and liabilities in the context of foreign exchange translation.

Understand how dividends and income taxes are treated in foreign currency translation.

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