Which of the Following Is an Example of Direct Foreign

question 4

Multiple Choice

Which of the following is an example of direct foreign investment?

• A)A U.S. citizen buys stock in a Mexican company.
• B)The Bank of China buys U.S. Treasury bonds.
• C)Apple builds a plant in Ireland.
• D)A company in England buys inputs to production from a German company.

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Definitions:

Allowance Method

An accounting technique used to account for expected credit losses on accounts receivable by anticipating uncollectible accounts.

Market Valuation

Market valuation is the process of determining the monetary value of a company or asset in the marketplace, typically reflected in its stock price or the total market capitalization.

Direct Method

A cash flow statement presentation that itemizes the major categories of gross cash receipts and payments, providing a clearer view of a company's cash flow from operating activities.

Ending Inventory

The total value of a company's merchandise, raw materials, work-in-progress, and finished goods at the end of an accounting period.