________ float occurs when there is a delay between when a firm issues a check and when the funds are removed from the checking account balance. A) Net B) Book balance C) Disbursement D) Collection E) Electronic funds transfer (EFT) ANSWER C
Date: September 19th, 2020
________ float can be calculated by subtracting a firm’s book balance from the firm’s available balance. A) Net B) Collection C) Electronic funds transfer (EFT) D) Compensating E) Disbursement ANSWER A
Date: September 19th, 2020
Net float equals A) disbursement float + collection float. B) the available balance − the firm’s book balance. C) disbursement float − collection float − the firm’s book balance. D) disbursement float − collection float. E) disbursement float + collection float − the firm’s available balance. ANSWER B
Date: September 19th, 2020
The delay between when you receive payment and when the bank gives you credit is called A) Disbursement Float B) Net Float C) Clearing Float D) Collection Float ANSWER D
Date: September 19th, 2020
The increased risk of doing business in a foreign country can be offset by: A) Lack of growth. B) Arbitrage. C) Diversification. D) Expropriation. ANSWER C
Date: September 19th, 2020
A(n) ________ is an annotation put on a checking account preventing funds on deposit that can be spent. A) Hold B) Stop C) Float D) ETF ANSWER A
Date: September 19th, 2020
Which of the following is not a possible political risk when practicing business internationally? A) Loss of using own specialized labor B) Fewer opportunities for growth C) Limited ability to convert currency D) Additional taxes ANSWER B
Date: September 19th, 2020
It is more difficult to deal with political risk than exchange rate risk. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
A company has the possibility to pay off a line of credit early for a 2% discount rate if paid off in 25 days. There are 24.333 discount periods for the year for this money if the discount is not taken. What are the terms for this cash discount? A) 2/25 net 50 B) 2/25 […]
Date: September 19th, 2020
Tariffs imposed by a foreign government are an example of A) Exchange rate risk B) Foreign risk C) Policy risk D) Political risk ANSWER D
Date: September 19th, 2020
