An entity obtaining short-term financing with trade credit will pay a higher percentage financing cost, everything else being equal, when the:

• A.Discount percentage is lower.
• B.Items purchased have a higher price.
• C.Items purchased have a lower price.
• D.Supplier offers a longer discount period.

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At an organization that uses a periodic inventory system, the accountant accidentally understated the organization s beginning inventory. How would the accountant's accident impact the income statement?

• A.Cost of goods sold will be understated and net income will be overstated.
• B.Cost of goods sold will be understated and there Wi-Fi be no impact on net income.
• C.Cost of goods sold will be overstated and net income will be understated
• D.There will be no impact on cost of goods sold and net income will be overstated

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A control that a company can use to detect forged EDI messages is to:

• A.Acknowledge all messages initiated externally with confirming messages.
• B.Permit only authorized employees to have access to transmission facilities.
• C.Delay action on orders until a second order is received for the same goods.
• D.Write all incoming messages to a write-once/read-many device for archiving.

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International marketing activities often begin with:

• A.Domestic marketing.
• B.Global marketing.
• C.Limited exporting.
• D.Standardization.

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A domestic entity and a foreign entity purchased the same stock on the foreign stock exchange and held the stock for 1 year. The value of the foreign currency weakened against the domestic currency over this period. Comparing the returns of the two companies, what will be the domestic entity's return?

• A.Lower.
• B.Higher.
• C.The same.
• D.Higher in the short-run but lower in the long-run.

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