Question

1. a US company purchases medical lab equipment from a Japense company. the Japanese company requires payment in Japenese yen. in this transaction, the YEN would be referred to as the ________ currency.
a. measurement
b. denominated
c. purchasing
d. selling

2. a critical characteristic of a derivative is that the instrument
a. derives its value from a related asset or liability
b. derives its value from changes in value of a related asset or liability
c. requires that the related asset or liability be sold or bought at settlement
d. requires the holder of the derivative instrument to make a significant investment

3. Under the goodwill method,
a. declines in asset value prior to new partner admission are recorded, but not asset appreciation
b. the total capital of the new partnership must approximate the fair value of the entity
c. a new partners capital balance may be less than his or her contribution
d. all of the above

Answer 1

1.B

a US company purchases medical lab equipment from a Japense company. the Japanese company requires payment in Japenese yen. in this transaction, the YEN would be referred to as the Denominated currency.

2.B derives its value from changes in value of a related asset or liability

3.D

Answer 2

US company purchases medical lab equipment from a Japense company. the Japanese company requires payment in Japenese yen. in this transaction, the dollar would be referred to as the