Which of the Following Is False

question 14

Multiple Choice

Which of the following is false?

• A)One reason why central banks may intervene in financial marks is to resolve a severe but temporary liquidity crisis and to stabilize international financial markets.
• B)One reason why central bankers may intervene in foreign exchange markets is they believe exchange rates are deviating significantly from fundamental underlying values (that is, the dollar is overvalued or undervalued because of speculation in the market).
• C)In late 2000, central banks of major industrialized countries carried out a coordinated intervention to boost the value of the sagging euro.
• D)Central bank intervention has proven successful in that the goals of the intervention have always been met.

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Definitions:

Net Credit Sales

Sales made on credit minus any sales returns or allowances, reflecting the actual credit sales revenue.

Uncollectible Accounts

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

Estimated Uncollectible

An accounting term referring to the portion of accounts receivable that a company does not expect to collect.

Allowance Method

is an accounting technique that estimates and reports the likely amount of uncollectible accounts receivable as an allowance for doubtful accounts.