American Depository Receipts ​1) Represent American Securities Traded Abroad

question 20

Multiple Choice

American Depository Receipts
​1) represent American securities traded abroad
2) represent foreign stocks traded in the United States
3) facilitate trading in foreign stocks
4) facilitate trading in American securities
​

• A)​1 and 3
• B)​1 and 4
• C)​2 and 3
• D)​2 and 4

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Definitions:

Property Plant

Long-term tangible assets used in the operation of a business but not expected to be consumed or converted into cash in the normal course of business.

Foreign Currency

Currency used in a country other than one's own, representing the medium of exchange for international transactions.

Exchange Differences

Financial discrepancies that arise from converting transactions made in foreign currencies into the reporting currency.

Revaluation

The process of adjusting the book value of a capital asset to reflect its current market value.