Question

Question 17

1. Which of the following represents an advantage of setting up a manufacturing plant in a foreign trade zone?

   		A company that has set up a manufacturing plant in a foreign trade zone is free from paying U.S. income taxes.
   		Goods sold in a foreign trade zone are exempt from paying duty.
   		Goods imported into a foreign trade zone are duty-free until they leave the zone for sale in the United States.
   		A company that has set up a manufacturing plant in a foreign trade zone is free from paying duty on inventory included in finished products.

Question 18

1. Which of the following is true of economic risk?

   		It is the degree to which a firm's financial statements are exposed to exchange rate fluctuation.
   		It refers to the possibility that future cash transactions will be affected by changing exchange rates.
   		It refers to the possibility that a firm's present value of future cash flows will be affected by exchange rate fluctuations.
   		It is synonymous with translation risk.

Question 19

1. Over half the cases of fraud are discovered through:

   		tips and by accident.
   		internal audits and external audits.
   		internal controls and external audits.
   		internal audits and internal controls.

Question 20

1. _____ is a premier credential for a forensic accountant.

   		Certified Public Accountant
   		Certified Financial Analyst
   		Certified Management Accountant
   		Certified Fraud Examiner

Answer 1

Question 17
Which of the following represents an advantage of setting up a manufacturing plant in a foreign trade zone?
A company that has set up a manufacturing plant in a foreign trade zone is free from paying U.S. income taxes.
Goods sold in a foreign trade zone are exempt from paying duty.
Goods imported into a foreign trade zone are duty-free until they leave the zone for sale in the United States.	when foreign merchandise is brought into a Foreign-Trade Zone, no Customs duty is owed until the goods leaves the zone and enters for sale in the United States.
A company that has set up a manufacturing plant in a foreign trade zone is free from paying duty on inventory included in finished products.
Question 18
Which of the following is true of economic risk?
It is the degree to which a firm's financial statements are exposed to exchange rate fluctuation.
It refers to the possibility that future cash transactions will be affected by changing exchange rates.
It refers to the possibility that a firm's present value of future cash flows will be affected by exchange rate fluctuations.	Economic Risk refers to unexpected currency rate fluctuations which would impact present value of future cash flow operations of a firm's parent company and foreign subsidiaries.
It is synonymous with translation risk.
Question 19
Over half the cases of fraud are discovered through:	Over half the cases of fraud are discovered through tips and by accident
tips and by accident.
internal audits and external audits.
internal controls and external audits.
internal audits and internal controls.
Question 20
_____ is a premier credential for a forensic accountant.
Certified Public Accountant
Certified Financial Analyst
Certified Management Accountant
Certified Fraud Examiner	The certified fraud examiner credential provides Forensic Accountants with the technical knowledge necessary to perform effective investigations.