16. Eurodollars are best described as ===============
a) The new currency of the European Union
b) A U.S dollar denominated deposit ….generally in a
bank located outside the United States …that is not subject
to US banking regulation.
c) A currency deposited outside its country of origin
d) A foreign..denominated deposit subject to US
banking regulations
15. Which statement about ADRs is true?
a) An ADR is the receipt for the shares of a foreign
based corporation held in U.S bank
b) ADRs do not trade on U.S exchange
c) ADRs give non U.S investors a way to buy non US
company shares in the US market.
d) The holder of an ADR is entitled to only the
dividends for the security
13. The firm has 20,000 common shares authorized,
15,000 shares outstanding, and 3,000 shares of treasury
stock. How much common equity shares are issued.
a) 2,000
b) 5,000
c) 17,000
d) 18,000
11. EOQ is the order quantity that========== over our
planning horizon
a) Minimizes total ordering costs
b) Minimizes total carrying costs
c) Minimizes total inventory costs
d) The required safety stock
3. In reviewing Corporate equity on a balance sheet,
what effect be included in the description “Total Capital
Stock”
a) Par value of preferred
b) Par value of common
c) Paid in Capital excess of par value
d) Both (a) and (b)
2. Contingent liabilities should be recorded in the
books when;
a) It is probable that the future events will occur
b) The amount of the liability can be reasonable
estimated.
c) Both (a) and (b)
d) Either (a) or (b)
1. A firm buys stock for $100 by cheque and intends to
sell it for $200, so the double entry should be
a) Debit bank $100 and credit stock $ 100
b) Credit bank $ 200 and debit stock $ 200
c) Debit purchases $100 and credit sales $ 200
d) Debit purchases $ 100 and credit bank $ 100
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