An Attempt to Profit by Converting Dollars to Yen, Yen

question 48

Multiple Choice

An attempt to profit by converting dollars to yen, yen to euros, and euros back to dollars would be an example of [blank].

• A)arbitrage
• B)ask rate
• C)hedging
• D)intervention

---

Definitions:

Accrued Liabilities

Expenses that have been incurred but have not been paid at the end of the accounting period.

Indirect Method

A accounting technique used to prepare the cash flow statement, converting net income into net cash flow from operating activities by adjusting for non-cash items and changes in working capital.

Net Income

Total earnings of a company after all expenses and taxes have been deducted from total revenue.

Note Receivable

A financial asset representing a written promise for a debtor to pay a specified sum of money to the creditor on a demand or at a future date.