One Disadvantage of a Reinvoicing Center Is _______

question 25

Multiple Choice

One disadvantage of a reinvoicing center is _______ .

• A)less chance of local government suspicion
• B)less communication costs
• C)more communications costs
• D)more exchange rate risk

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Definitions:

Investing Activities

Transactions involving the acquisition and disposal of long-term assets and investments not included in cash equivalents.

Financing Activities

Transactions involving long-term liabilities, stockholders' equity, and changes in short-term loans that affect a company's cash flow.

Note Payable

A written agreement to pay a specific sum of money, usually including interest, at a future date.

Statement of Cash Flows

A financial report that provides aggregate data regarding all cash inflows and outflows a company receives.