Which of the Following Would NOT Be Considered a Typical

question 58

Multiple Choice

Which of the following would NOT be considered a typical BOP transaction?

• A) Toyota U.S.A. is a U.S. distributor of automobiles manufactured in Japan by its parent company.
• B) The U.S. subsidiary of European financial giant, Credit Suisse, pays dividends to its parent in Zurich.
• C) A U.S. tourist purchases gifts at a museum in London.
• D) All are example of BOP transactions.

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Definitions:

Days' Sales

Refers to the ratio that indicates how many days worth of sales a company has in inventory, providing insight into inventory management efficiency.

Inventory

An accounting term for goods and materials that a business holds for the ultimate goal of resale or repair.

Inventory Turnover

A measure of how frequently a company sells and replaces its stock of goods during a certain period of time, indicating the efficiency of inventory management.

Lower-Of-Cost-Or-Market

An accounting principle that values inventory at the lower of either its historical cost or its current market price.