Because the Value of the SDR Is Tied Directly to the Value

question 56

True/False

Because the value of the SDR is tied directly to the value of the U.S.dollar,a 10 percent dollar depreciation would result in a 10 percent decrease in the SDR's value.

---

Definitions:

Operating Activities

Business activities related directly to the production, sale, and delivery of a company's products or services, often reflected in its cash flow.

Fixed Asset

Long-term tangible assets held for business use and not expected to be converted to cash in the coming fiscal year, such as buildings, machinery, and equipment.

Direct Method

An approach to preparing the cash flow statement that lists actual cash inflows and outflows from operating activities.

Operating Activities

The day-to-day actions and transactions that relate to the primary operations of a business, such as sales and purchasing.