Concept explainers
Current and Long-term Liabilities: Liabilities are referred to as the obligations of the business towards the creditors for operating the business. Liabilities may be short-term or long-term depending upon the time duration in which it is paid back to the creditors. Liabilities are classified in to current liabilities and long-term liabilities. Current liabilities are those liabilities which need to be paid within a year. Long-term liabilities are those liabilities that have longer maturity period.
GAAP: Generally Accepted Accounting Principle (GAAP) is a common set of accounting principles, standards, and procedures that the companies must follow at the time of preparation of the financial statements.
IFRS: International Financial Reporting Standard is abbreviated as IFRS. The IFRS is set up to bring a standard global language in accounting, so that the other firms across the globe can understand the accounting term of all other businesses.
To report: the differences between the F company and the competitor.
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Intermediate Accounting
- q11 Which of the following is an arrangement by which one party promises to pay a sum of money to policyholder as protection against an adverse or unfavorable occurrence of event? a. Short Term Loans b. Fixed Deposit c. Insurance d. Investment q12 Insurance companies and brokerage houses are examples of which of the following. a. Financial instruments b. Financial institutions c. Medium of exchange d. Financial marketsarrow_forwardQUESTION 15 Securitization enables a bank to: O a. Move assets off its balance sheet O b. Shift credit risk onto investors Oc. a and c O d. Increase its credit risk QUESTION 16 By far the largest market for OTC derivatives is in: O a. equity derivatives O b. foreign exchange options Oc. commodity derivatives Od. interest rate swapsarrow_forwardANSWER ASAPQ13IF the ratio of nonperforming assets to total loans and leases increases it leads to a lower credit risk exposure . True Faisearrow_forward
- Sovereign risk refers to the risk that repayments from: Question 11Answer a. local borrowers are interrupted because of interference from foreign governments. b. foreign borrowers are interrupted because of interference from local governments. c. foreign borrowers are interrupted because of interference from foreign governments. d. None of the listed options are correct.arrow_forwardPQ 5 In the monetary yapproach to the exchange rate, which of the following will cause a depreciation of A's currency relative to B's currency? a. an increase in the amount of money demanded at each income level in the country B b. an increase in the money supply in country B c. a fall in the real income in country B d. a decrease in the money supply in country Aarrow_forwardQUESTION 15 The existence of inefficiencies in capital markets due to lack of disclosure and other reasons that may prevent portfolio investment from equalizing rates of return for given levels of risk internationally supports the hypothesis of foreign direct investment: O a. Market Disequilibrium O b. Market Structure O. Market equilibrium O d. Market Failure O e. Government Imposed Distortion QUESTION 16 A DISC (in international taxation) is a: O a. Company located in a foreign country that conducts domestic and international sales. Ob. Company incorporated in a possession territory of the United States. O c. Dummy Company to which a U.S. export company sources its profits. O d. Dummy International Sales Commission (for Tax Havens) O e. Sales Company working with international dummies. QUESTION 17 Answer questions 17 and 18 based on the following information: As you know, Flabovia has adopted a Value Added Tax (VAT); the tax rate across the board is 15%. A farmer grows vegetables and…arrow_forward
- Question 90 Debt explosion can happen when debt is restructured with interest payments being deferred. central bank looses its credibility. increases in the interest rate and increases in the debt ratio feed on each other. Government borrows from IMF and it imposes a lot of conditions.arrow_forwardD Question 7 10 Advantages of loan sales and securitization typically include all but whick one of the following? O Reduction in credit risk O Reduction in interest rate risk O Increase in liquidity of the balance sheet O Reduction in regulatory tax burden O Increase in net interest incomearrow_forwardQUESTION 17 Using the equation S = I+ NCO we can say a. Savers can do two things with their funds, invest them domestically through NCO or in foreign markets via I b. Savers can do two things with their funds, invest them domestically through I or in foreign markets through NCO c. Savers have unlimited options for their money d. Investment and NCO must be equal QUESTION 18 As the Real Exchange Rate rises a. Foreign purchases become more expensive O b. People do not want to buy things from abroad O c. Foreign purchases become cheaper in the domestic currency O d. Net Capital Outflows may decreasearrow_forward
- 20 - What is the most risky payment method for the importer company?A) Advance payment B) On-off payment C) Payment against documents D) AllE) Payment with acceptance creditarrow_forwardPQ 6 In the Dornbusch "overshooting" model, asset markets adjust rapidly to disturbances than do goods markets, and therefore the exchange rate and the price level proportionately to each other in the short run. a. more/move b. more/do not move c. less/move d. less/do not movearrow_forward18- text _____________ is one of the financial market instruments which grants a short-term loan that is usually sanctioned by the banks for importers and exporters to finance specific transactions. a. Share Acceptance b. Bond Acceptance c. Repurchase Acceptance d. Bankers’ Acceptancearrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,