Use the Following Information for Question 102-103

question 167

Multiple Choice

Use the following information for question 102-103.
During its December 31, 2014 year-end inventory count, Jefferson Company failed to count items in transit to which it had legal title. As a result of this error, ending inventory was understated by $30,000.
-Assuming the company makes no errors in 2015, Jefferson's owner's equity at the end of December 2015 will be

• A) overstated by $30,000.
• B) understated by $30,000.
• C) overstated by $60,000.
• D) correct.

Identify and explain the types of international bonds and their characteristics.

Understand exchange rate risks and how they impact international finance.

Understand the operational framework of the foreign exchange market, including various trading mechanisms.

Apply concepts like forward rate and spot rate in managing exchange rate risks.

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Definitions:

Apparent Authority

The impression given to third parties that an agent is authorized to act on behalf of a principal, even if such authority has not been formally granted.

Proper Notification

The act of informing someone through legally accepted or specified means.

Doctrine

A principle or body of principles presented for acceptance or belief, as by a religious, philosophical, scientific, or political group; policy.

Third-Party Estoppel

A legal principle that prevents a party from asserting or denying a fact due to another's act, when the third party has relied upon that act or representation.