The Increase in the Internationalization of Financial Markets Has Led

question 33

Multiple Choice

The increase in the internationalization of financial markets has led to

• A) companies searching the global financial markets for low cost funds.
• B) an increase in American Depository Receipts (ADRs) on the New York Stock Exchange.
• C) an increase in debt obligations denominated in foreign currency on U.S. corporate balance sheets.
• D) all of these.

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Definitions:

Cost Method

An accounting approach whereby investments are recorded at their original purchase cost, without adjusting for changes in fair value, except for impairments.

Investment

The allocation of resources, such as capital or time, in the expectation of generating an income or profit.

CICA Handbook

The Canadian Institute of Chartered Accountants Handbook, which contains accounting and assurance standards in Canada.

Capitalize

To record a cost as a long-term asset rather than an expense, spreading the cost over its useful life.