Each ADR Represents ________ of the Shares of the Underlying

question 62

Multiple Choice

Each ADR represents ________ of the shares of the underlying foreign stock.

• A) a multiple
• B) 100
• C) 1
• D) ADRs have nothing to do with foreign stocks.

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Definitions:

Debit Cash

An accounting entry that increases the cash balance in a company's books, indicating inflows of money or equivalent.

Credit Cash

An accounting entry that decreases the cash balance in the company’s books, often as a result of paying out cash for expenses or liabilities.

Accounts Payable

Liabilities of a business that represent its obligations to pay off a short-term debt to its creditors or suppliers.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services delivered or used but not yet paid for.