Morton Company Obtains a One-Year Loan of 2,000,000 Sudanese Dinar

question 10

Multiple Choice

Morton Company obtains a one-year loan of 2,000,000 Sudanese dinar (SDD) at an interest rate of 6%.At the time the loan is extended,the spot rate of the dinar is $.005.If the spot rate of the dinar at maturity of the loan is $.0035,what is the effective financing rate of borrowing dinar

• A) 37.8%.
• B) 51.43%.
• C) -25.8%.
• D) -6%.
• E) none of the above

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Definitions:

Background Checks

Procedures used to verify the personal, financial, and criminal records of individuals, typically used by employers during hiring processes.

Improper Diversion

Refers to the unauthorized or illegal redirection of resources, funds, or assets for purposes other than those intended.

Internal Control

Procedures and policies implemented by a firm to protect its assets, ensure accurate and reliable financial reporting, promote operational efficiency, and encourage adherence to laws and regulations.

Segregation of Duties

A principle in accounting and corporate governance that aims to reduce the risk of error and fraud by dividing responsibilities among different individuals or departments.