In General, MNCs Probably Prefer to Use ____ Foreign Debt

question 1

Multiple Choice

In general, MNCs probably prefer to use ____ foreign debt when their foreign subsidiaries are subject to potentially ____ local currencies.

• A) more; strong
• B) more; weak
• C) less; strong
• D) less; weak
• E) B and D

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent ones, thereby preparing the company's books for the next accounting period.

Adjusted Balances

Financial statement figures corrected for errors, omissions, or other adjustments as part of the reconciliation process.

Closing Entries

Entries recorded at the close of an accounting cycle to move balances from temporary to permanent accounts, thus preparing the temporary accounts for the upcoming period.

Ledger

A comprehensive collection of a company's accounts in which transactions are recorded and balanced.