Because of Increasing Correlation Between U

question 43

Multiple Choice

Because of increasing correlation between U.S.markets and foreign markets,most professional investors now recommend:

• A)zero exposure to foreign markets for the foreseeable future.
• B)replacing foreign stock exposure with U.S.Treasury bonds.
• C)maintaining some reasonable exposure to foreign markets.
• D)replacing foreign stock exposure with sovereign debt from investment grade countries.

---

Definitions:

First-In, First-Out (FIFO)

An accounting method where the cost of the earliest inventory items purchased are the first to be recognized in determining cost of goods sold.

Perpetual Inventory System

A system of maintaining inventory records that updates the balance of inventory after each purchase or sale in real time.

Ending Inventory

The total monetary value of products available for transaction at the end of a financial cycle.

Inventory Error

Mistakes or inaccuracies in counting or valuing inventory that can affect financial statements and business decisions.