1. An international firm which imports raw materials can reduce its _____ exposure to _____ rate risk by entering into a forward contract.
long-run; exchange
total; interest
short-term; inflation
short-run; exchange
2. Recognition of the cost of using physical capital equipment over its useful life is referred to as:
A. Accrued expense
B. Amortization
C. Capital expenditures
D. Depreciation