The Theory That Goods in a Foreign Country Should Be

question 61

Multiple Choice

The theory that goods in a foreign country should be priced approximately equal after currency translation to goods in a host country is referred to as the law of:

• A) exchange rates.
• B) large numbers.
• C) spot rates.
• D)one price.

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Definitions:

Credit Memo

A credit memo is a document sent by a seller to a buyer, reducing the amount that the buyer owes under the terms of an earlier invoice.

Bank Service Charge

Fees charged by banks for the use of their services, such as account maintenance fees, non-sufficient funds (NSF) fees, and transaction fees.

Adjusting Journal Entries

Entries made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

NSF Check

A check that cannot be processed due to insufficient funds in the account of the drawer, commonly known as a bounced check.