Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

7. Receivables and Investments

Introduction to Investments in Securities

Financial Accounting

7. Receivables and Investments

Introduction to Investments in Securities

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Multiple Choice

Which financial activity helps a company based in another country raise capital in the domestic market?

Issuing American Depositary Receipts (ADRs)

Recording depreciation expense

Paying dividends to shareholders

Preparing a cash flow statement

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Verified step by step guidance

Understand the concept of American Depositary Receipts (ADRs): ADRs are financial instruments that allow companies based in another country to raise capital in the domestic market by issuing shares that are traded on U.S. stock exchanges.

Analyze the purpose of ADRs: ADRs enable foreign companies to access U.S. investors and raise funds without directly listing their shares on U.S. exchanges. This is a key financial activity for raising capital in the domestic market.

Evaluate the other options: Recording depreciation expense is an accounting activity related to asset valuation, not capital raising. Paying dividends to shareholders is a distribution of profits, not a method of raising capital. Preparing a cash flow statement is a reporting activity, not a financial activity for raising capital.

Identify the correct answer: Issuing ADRs is the financial activity that helps a company based in another country raise capital in the domestic market.

Conclude: The correct answer is 'Issuing American Depositary Receipts (ADRs)' because it directly relates to raising capital in the domestic market for foreign companies.