Which Is Not a Function of the Foreign Exchange Market

question 4

Multiple Choice

Which is not a function of the foreign exchange market?

• A)to transfer funds from one nation to another
• B)to finance trade
• C)to diversify risks
• D)to provide the facilities for hedging

Apply the concept of cycle efficiency in operational management.

Understand how to calculate the gain or loss on disposal of an asset and its impact on financial statements.

Interpret the effects of different depreciation methods on the financial statements.

Identify the procedure for apportioning the cost of intangible assets and recognition of expenses.

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Definitions:

Incremental Cash Flow

Those cash flows that arise solely from the asset that is being evaluated.

Present Value

The current valuation of upcoming cash flows or a lump sum of money, discounted at an established rate of return.

Sunk Cost

An expense that has already been incurred and cannot be recovered, which should theoretically not influence any future financial decisions or strategies.

Expensed

The act of charging costs to expense accounts, recognizing them in the income statement in the period they were incurred.