42. G.Simkins sends back stock to J.J. Fabrics (a
supplier), having originally purchased it on Credit. J.J.
fabrics issued a Credit note for the value of these goods.
In simkins’ books, the double entry for this transaction
a) Debit : J.J. Fabrics; Credit purchases
b) Debit : purchases; credit J.J. Fabrics
c) Debit : J.J. Fabrics; credit purchase returns
d) Debit: purchases returns; credit J.J Fabrics.
40. If revenue was $70,000, expenses were $59,000, and
the owner’s withdrawals were $25,000, the amount of net
income or net loss was:
a) net income of $11,000
b) Net income of $36,000
c) Net loss of $59,000
d) Net income of $70,000
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
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