Blockage Is Ideally Accomplished

question 64

Multiple Choice

Blockage is ideally accomplished:

• A) when a country refuses to allow an importer to exchange its national currency for the seller's currency.
• B) when two countries enter into a voluntary agreement to restrict volume of exports.
• C) when a country applies specific unit or dollar limit to a particular type of good.
• D) when countries limit the export of certain goods on a case-by-case basis.
• E) when the government imposes a mandatory tax on goods entering at its borders.

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Definitions:

Indirect Method

A method of reporting the cash flows from operating activities as the net income from operations adjusted for all deferrals of past cash receipts and payments and all accruals of expected future cash receipts and payments.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.

Direct Method

The Direct Method in accounting refers to a way of reporting cash flows from operating activities by directly listing major classes of gross cash receipts and payments.

Operating Activities

The primary revenue-generating activities of a business which include production, sales, and delivery of the company’s main goods and services.