7. The following represents the inflation rates of foreign country X for the past 4 years: Year 1: 35% Year 2: 20% Year 3: 25% Year 4: 30% Which statement is correct about the selection of a functional currency for country X at the end of year 4. a. Country X is highly inflationary; the US dollar must be used b. Country X is highly inflationary; the foreign currency must be used c. Country X is not highly inflationary; the US dollar must be used d. Country X is not highly inflationary; the foreign currency must be used e. Country X is not highly inflationary, either the US dollar or the foreign currency may be used depending on the factors to determine the functional currenc 8. Which of the following effective hedges is not permitted under GAAP a. hedge of an foreign currency asset or liability b. hedge of a foreign currency firm commitment c. hedge of a foreign currency forecasted transaction d. hedge of a net investment in a foreign currency e. all of the above are permitted under GAAP 9. Final distribution of partnership cash in made in according to what rule: a. partner with highest capital balance paid first b. partner who joined the partnership earliest is paid first c. partner who worked the hardest is paid first d. partners are paid in proportion to original profit and loss percentages e. partners are paid in proportion to final capital balances 10. Which is true about obligations due to partnership creditors in a liquidation of a partnership a. partnership creditors may claim against any partner's personal assets b. partnership creditors may claim against any partner's personal creditors c. partnership creditors may claim against other partnership creditors d. partnership creditors may claim to the lesser of partnership cash or any partner's positive capital balances e. partnership creditors may claim to the higher of partnership cash or any partner's positive capital balances