Which One of the Following Statements Is True

question 9

Multiple Choice

Which one of the following statements is true?

• A)Global investments must be evaluated just like other investment alternatives.
• B)Since global investments can only be bought in the U.S. ,there is no need to worry about currency exchange rates.
• C)Today,very few investors are investing in stocks and bonds issued by foreign firms or in global mutual funds.
• D)For most small investors,it makes more sense to invest in stocks and bonds issued by individual foreign firms,rather than in global mutual funds.
• E)Evaluating global investments is easy because there is plenty of good information availablE.

Identify the activities for which cash is used in a company, including the inappropriate uses.

Understand the accounting entries for the purchase, interest receipt, and sale of bonds.

Recognize the special accounting treatment for foreign currency translation adjustments and their effect on other comprehensive income.

Understand the equity method of accounting for investments and its application criteria.

---

Definitions:

Arousing

Capable of stimulating excitement, interest, or attention, either physically or emotionally.

Humiliated

The feeling of being deeply ashamed or embarrassed, often as a result of one's dignity being lowered in front of others.

Sexual Masochism

A sexual preference for experiencing pain, humiliation, or suffering during sexual activity.

Frotteurism

A paraphilic interest focused on touching or rubbing against a non-consenting person, often in crowded places.