Gold Par Value Refers to the

question 3

Multiple Choice

Gold par value refers to the

• A) ratio of the price of gold in a currency to the price of gold in U.S. dollars.
• B) amount of a currency needed to purchase one ounce of gold.
• C) ratio of price of gold in a currency to the price of gold in euros.
• D) amount of gold required to equal the reference currency that a nation is using.

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Definitions:

Treasury Stock

Shares that were issued and subsequently repurchased by the issuing company, reducing the amount of outstanding stock on the open market.

Consolidation Worksheet

A tool used in preparing consolidated financial statements, aiding in the combination of financial information from multiple entities within a corporate group.

Initial Value Method

A method used in accounting to record investments based on their acquisition costs without any subsequent change except for impairments.

Treasury Stock Approach

A method of calculating the effect of share options on diluted earnings per share by assuming treasury shares are bought at the average market price.