What is a moving-average crossover rule?
What will be an ideal response?
Moving-average crossover rules use moving averages of the exchange rate to indicate trade directions. An n-day moving average is just the sample average of the last n trading days, including the current rate. A (y, z) moving-average crossover rule uses averages over a short period (y days) and over a long period (z days). The strategy states that you should go long (short) in the foreign currency when the short-term moving average crosses the long-term moving average from below (above). Common rules use 1 and 5 days (1, 5), 1 and 20 days (1, 20), and 5 and 20 days (5, 20).
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Under the indirect method, if a current liability account increases from the beginning of the year to the end of the year, what is the impact of the change on the statement of cash flows?
a. Cash inflow from financing activities is increased; b. Cash inflow from financing activities is decreased; c. Cash inflow from operating activities is increased; d. Cash inflow from operating activities is decreased; e. none of these.
For public companies reporting under Sarbanes-Oxley, the auditor reports on the firm's internal controls in addition to the audit report
Indicate whether the statement is true or false