An Example of a Political Risk Is

question 59

Multiple Choice

An example of a political risk is

• A)expropriation of assets.
• B)adverse change in tax rules.
• C)the opposition party being elected.
• D)both the expropriation of assets and adverse changes in tax rules are correct.

Analyze changes in balance sheet accounts to determine their impact on cash flows.

Distinguish between cash flows from operating activities and other adjustments.

Recognize the effect of accounts receivable, inventory, and accounts payable changes on cash flow.

Calculate net cash flow given a set of transactions.

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Definitions:

Journal Entries

Records that detail all the financial transactions of a business, used in the double-entry bookkeeping system.

Accounting Standards for Private Enterprises

Specific accounting guidelines tailored for private companies to ensure transparency, comparability, and clarity in financial reporting.

Dividends

Distributions of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Journal Entries

Recorded transactions in the accounting system that show the effects of financial events on the accounts of a company.