One Type of Foreign Bond That Carries No Currency Exchange

question 78

Multiple Choice

One type of foreign bond that carries no currency exchange rate risk for a U.S. investor is a

• A) Eurodollar bond.
• B) foreign-pay bond.
• C) PIK bond.
• D) Yankee bond.

Recognize the accounting treatment for payroll taxes and withholdings.

Distinguish between different types of notes payable.

Comprehend how interest on notes payable is calculated and reported.

Acknowledge the criteria for recording contingent liabilities.

---

Definitions:

Criminally Liable

The legal responsibility one holds for committing a crime, subjecting them to criminal prosecution and penalties.

Vicarious Liability

A legal principle where an individual or entity is held responsible for the actions or omissions of another person, typically in employment situations.

Scope of Employment

Refers to the range of activities and duties that an employee is expected to perform as part of their job.

Undisclosed Principal

A party in a contract whose identity is unknown to the third party at the time the contract is made.