Which of the Following Is Not an Example of Foreign

question 60

Multiple Choice

Which of the following is not an example of foreign aid?

• A)U.S.discount department stores purchasing toys from Chinese manufacturers
• B)The International Monetary Fund extending loans to countries that have trouble with their balance of payments
• C)The World Bank providing loans and grants to support health and education programs
• D)The U.S.government paying to build an electricity plant in Albania
• E)The Australian government paying to repair highways in Tonga

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Definitions:

Cost of Sales

The direct costs attributable to the production of the goods sold by a company, including raw materials, labor, and manufacturing overhead.

Percentage of Credit Sales Method

An accounting technique used to estimate the value of uncollectible accounts receivable based on a historical percentage of sales that resulted in bad debts.

Net Sales

The amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and any discounts allowed.

Credit Losses

Financial losses that a lender anticipates or experiences due to borrowers failing to make required payments.