If You Are an Importer of Goods and You Need

question 103

Multiple Choice

If you are an importer of goods and you need to make payment for the purchase of inventory before the close of business today,which of the below is the correct term for the exchange rate that you will use?

• A) indirect rate
• B) spot rate
• C) direct rate
• D) forward rate

---

Definitions:

Defined Benefit Pension Plan

A retirement plan where employee benefits are calculated on a formula including salary history and duration of employment, with the employer bearing investment risk.

Pension Plan Asset

The resources set aside to meet future pension obligations, including investments and other assets.

IFRS

International Financial Reporting Standards is a set of accounting standards developed by the International Accounting Standards Board (IASB) that is applied globally.

U.S. GAAP

The Generally Accepted Accounting Principles in the United States, a framework of accounting standards and procedures used in the U.S. to compile financial statements.