According to the hedging principle, which of the following assets should be financed with
permanent sources of financing?
A) seasonal increases in accounts receivable
B) seasonal expansions of inventory
C) levels of inventory and accounts receivable the firm maintains throughout the year
D) none of the above
C
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Purely domestic firms will be at a disadvantage to MNEs in the event of market disequilibria because:
A) domestic firms lack comparative data from its own sources. B) international firms are already so large. C) all of the domestic firm's raw materials are imported. D) None of the above; domestic firms are not at a disadvantage.
Which of the following best expresses the kind of information included in notes to the financial statements?
a. notes help to explain differences of opinion between the preparer of financial statements and the auditor. b. notes contain information essential to a user's understanding of the reporting government's financial position and resource inflows and outflows. c. notes contain explanations of why the reporting unit did not follow generally accepted accounting principles. d. notes contain the required management's discussion and analysis.