Sales finance companies
a. lend money to retailers.
b. buy installment loans from retailers.
c. sell installment loans to retailers.
d. lend money to consumers.
e. sell installment loans to banks.
B
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Currency arbitrage tends to result in identical yen/dollar exchange rates in New York and in Tokyo.
a. True b. False
FASB Statement No. 115 generally applies when the level of ownership of another company is at what percentage?
a. More than 50% b. 20%–30% c. 30%–50% d. Less than 20%
Under international accounting standards, cash paid for income taxes (associated with income tax expense) can be shown on the statement of cash flows as an
a. operating activity only. b. operating activity, or may be split between operating, investing, and financing activities depending on the nature of the transaction giving rise to the tax payment. c. operating activity, or may be split between operating and investing activities depending on the transaction giving rise to the tax payment. d. operating activity, or may be split between investing and financing activities depending on the transaction giving rise to the payment.
Kelly, Lars, and Mona agree to be partners in Neighborhood Delivery Service (NDS), splitting the profits equally. Kelly contributes 67 percent of the capital. When NDS is dissolved, its liabilities are greater than its assets. The losses are paid by
A. all of the partners in proportion to their capital contributions. B. all of the partners in proportion to their shares of the profits. C. Kelly because she contributed most of the capital. D. Lars and Mona because they contributed the least of the capital.