Answered: payment methods used in foreign trade

Business

Accounting

payment methods used in foreign trade

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter19: Financing International Trade

Section: Chapter Questions

Problem 1CT

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Concept explainers

Balance of Payments

BOP is categorized into the following three components:

Question

2 - Which of the following is not one of the payment methods used in foreign trade?
A) Payment by letter of credit

B) Joint payment

C) Offset payment

D) Advance payment

E) Payment with Acceptance Credit

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The law that specifically prohibits payments to foreign officials in order to attain business is known as ____________________________. FCPA AICPA SOX IFRS
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What concept underlies the two-transaction perspective in accounting for foreign currency transactions?
According to PAS 21, exchange differences arising from the translation of monetary items arising from foreign currency transactions are recognized in * A. Directly in equity B. Any of these C. Other comprehensive income D. Profit or loss
Choose the correct. In accounting for foreign currency transactions, which of the following approaches is used in the United States?a. One-transaction perspective; accrue foreign exchange gains and losses.b. One-transaction perspective; defer foreign exchange gains and losses.c. Two-transaction perspective; defer foreign exchange gains and losses.d. Two-transaction perspective; accrue foreign exchange gains and losses.
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Question: When accounting for foreign exchange transactions, which of the following statements accurately describes the use of the "Temporal Method" under the International Financial Reporting Standards (IFRS)? A) The Temporal Method is used to account for foreign exchange gains and losses on monetary assets and liabilities at the historical exchange rate. B) The Temporal Method is used to account for foreign exchange gains and losses on monetary assets and liabilities at the current exchange rate. C) The Temporal Method is used to account for foreign exchange gains and losses on non-monetary assets and liabilities at the historical exchange rate. D) The Temporal Method is used to account for foreign exchange gains and losses on non-monetary assets and liabilities at the current exchange rate.
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