The nominal interest rate in the U.S. is 5% and the nominal interest rate in Canada is 3%. The spot value of the U.S. dollar is 1 ($/Canadian dollar) and the forward rate is 1.2 ($/Canadian dollar). Which of the following is not true?A. The interest parity condition does not hold.
B. The dollar is likely to appreciate in spot markets.
C. Money will flow into the Canada.
D. The dollar is trading at a forward discount.

Answers

Answer 1

Answer: B. The dollar is likely to appreciate in spot markets.

Explanation:

First find the forward rate using the forward rate formula:

Forward rate = Spot rate * (1 + Interest rate of Canada) / (1 + Interest rate of US)

= 1 * ( 1 + 3%) / (1 + 5%)

= 0.980952

= 0.98

The forward rate according to the formula is less than the forward rate that is trading.

This means that the U.S. dollar is trading at a forward discount and when this happens, the dollar will not appreciate in the spot markets because it is scheduled to be discounted in the forward market.


Related Questions

The real risk-free rate of interest, k*, is 4 percent, and it is expected to remain constant over time. Inflation is expected to be 2 percent per year for the next four years, after which time inflation is expected to remain at a constant rate of 5 percent per year. The maturity risk premium is 0% for securities with maturities of 1 year or less, 0.1% in year 2, and increases by 0.1% per year thereafter. What is the yield on a 10-year Treasury bond

Answers

Answer:

8.3%

Explanation:

Real risk - free rate of interest ( k* ) = 4%

Inflation for next four ( 4 ) years = 2% per year

Inflation rate after four years = 5%

maturity risk premium =  0.1 ( t - 1 )%

Determine Yield on a 10-year Treasury bond

t = bond's maturity

Yield = Real risk - free rate + maturity risk premium + inflation rate

Inflation rate for 10 years = ( 4  + 30 ) / 10  ) % = 3.4%

Yield = 4% + 0.1(10- 1)% + 3.4

         = 4% + 0.9% + 3.4%

         = 8.3%

Oltman Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for next year:
Direct materials $25,000
Direct labor $22,000
Advertising expense $15,000
Rent on factory building $13,500
Sales salaries $28,000
Depreciation on factory equipment $6,500
Indirect materials $10,000
Insurance on factory equipment $12,000
Oltman estimated that 40,000 direct labor-hours and 20,000 machine-hours would be worked during the year. The predetermined overhead rate per machine-hour will be:___________
a) $1.05 per machine hour
b) $1.00 per machine hour
c) $2.10 per machine hour
d) $1.60 per machine hour

Answers

Answer:

Predetermined manufacturing overhead rate= $2.1 per machine hour

Explanation:

First, we need to calculate the estimated total overhead:

Total estimated overhead= Rent on factory building + Depreciation on factory equipment + Indirect materials + Insurance on factory equipment

Total estimated overhead= 13,500 + 6,500 + 10,000 + 12,000

Total estimated overhead= $42,000

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 42,000 / 20,000

Predetermined manufacturing overhead rate= $2.1 per machine hour

How you can convince your colleagues that introducing the new soft drink is the most profitable strategy by explaining the reasoning and theoretical analysis?

Answers

The question is incomplete. The complete question is :

Coca-Cola and PepsiCo are the leading competitors in the market for cola products. In 1960 Coca-Cola introduced Sprite, which today is the worldwide leader in the lemon-lime soft drink market and ranks fourth among all soft drinks worldwide. Prior to 1999, PepsiCo did not have a product that competed directly against Sprite and had to decide whether to introduce such a soft drink. By not introducing a lemon-lime drink, PepsiCo would continue to earn a $200 million profit and Coca Cola would continue to earn a $300 million profit.

Suppose that by introducing a new lemon-line soft drink, one of two possible strategies could be pursued : (1) PepsiCo could trigger a price war with Coca-Cola in both lemon-lime and cola markets or (2) Coca-Cola could acquiesce and each firm maintains its current 50/50 split of the cola market and split the lemon-lime market 70/30 in favor of Coca-Cola. If Pepsi introduced a lemon-lime drink and a price war resulted, both companies would earn profits of $100 million. Alternatively, Coca-Cola and PepsiCo would earn $275 million and $227 million, respectively, if PepsiCo introduce a lemon-lime drink and Coca-Cola acquiesced and split the markets as listed above.

Diagram this situation using the extensive or tree-form of a game.

How you can convince your colleagues that introducing the new soft drink is the most profitable strategy by explaining the reasoning and theoretical analysis?

Solution :

The game can be represented in a way that is shown in the file attached below.

The [tex]\text{best response of Coca-Cola}[/tex] if Pepsi introduces the new product is [tex]\text{to acquiesce}[/tex] to earn [tex]\$275[/tex] million rather than starting a price war with Coca-Cola and earn only [tex]\$100[/tex]. Thus, while [tex]\text{Coca-Cola}[/tex] might use the strategy to threaten by starting a price war in the attempt of keeping out of the market, the threat will not be credible, so the best option is to introduce the new soft drink .

Explain the four basic costs curves​

Answers

Answer:

The output is represented along OX and cost along OY; AFC curve represents average fixed cost. AVC curve represents average variable cost, ATC curve represents average total cost (i.e., total of AFC and AVC and is called AC, i.e., average cost). MC curve represents marginal cost

Explanation:

•|ᴥ jess ᴥ|•

#keep learning

Baylor Service Corp. redeemed $1,000 of gift cards that customers used to pay for services that were performed by the company. The related adjusting entry would include a debit to: A. Accounts Receivable and a credit to Service Revenue. B. Unearned Revenue and a credit to Service Revenue. C. Cash and a credit to Service Revenue. D. Cash and a credit to Unearned Revenue.

Answers

Answer:

B. Unearned Revenue and a credit to Service Revenue.

Explanation:

The adjusting entry is given below:

Unearned revenue $1,000

         To Service revenue $1,000

(Being service revenue is recorded)

Here unearned revenue is debited as it decreased the liabilities and credited the service revenue as it increased the revenue

Therefore the option b is correct

Reliance is an example of a
1 Product Line
2 Product
3 Product Mix
4 Product Variety

Answers

Reliance is an example of a Product Mix

The equity section of Cyril Corporation’s balance sheet shows the following. Preferred stock—6% cumulative, $25 par value, 10,000 shares issued and outstanding $ 250,000 Common stock—$8 par value, 100,000 shares issued and outstanding 800,000 Retained earnings 535,000 Total stockholders’ equity $ 1,585,000 Determine the book value per share of common stock under two separate situations. 1. No preferred dividends are in arrears at the current date. 2. Three years of preferred dividends are in arrears at the current date.

Answers

Answer:

1. No preferred dividends are in arrears at the current date.

Book value per share of common stock = Common Shareholder equity / Number of common stock shares

= (Total shareholders equity - Preferred stock) / Number of common stock shares

= (1,585,000 - 250,000) / 100,000

= $13.35 per share

2. Three years of preferred dividends are in arrears at the current date.

Preferred stock = (Preferred stock + Accumulated dividends)

= 250,000 + (6% * 250,000 * 3 years)

= 295,000 shares

Book value per share of common stock = (1,585,000 - 295,000) / 100,000

= $12.90 per share

Phân biệt triết lý bán hàng và triết lý Marketing

Answers

Answer:

I don't understand the language

The most recent financial statements for Summer Tyme, Inc., are shown here:
Income Statement Balance Sheet
Sales $3,700 Current assets $4,500 Current liabilities $960 Costs 2,400 Fixed assets 5,200 Long-term debt 3,620 Taxable income $1,300 Equity 5,120 Taxes (21%) 273 Total $9,700 Total $9,700 Net income $1,027
Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 60 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 30 percent.
Required:
What is the external financing needed? (Do not round your intermediate calculations.)
EFN = needed new long-term debt and/or external equity

Answers

Answer:

External finance needed = $2,088

Explanation:

Note: See the attached excel file for the Calculation of ratios with respect to sales, Proforma Income Statement, Calculation of Retained Earnings and Equity, and Proforma Balance Sheet.

From the Proforma Balance Sheet in the attached excel file, we have:

Total Assets = $12,610

Total Liabilities = $10,448

Therefore, we have:

External finance needed = Total Assets - Total Liabilities = = $12,610 - $10,448 = $2,088

On December 31, a $500,000 bond issue on which there is an unamortized premium of $67,000 is redeemed for $490,000. Journalize the redemption of the bonds. Refer to the Chart of Accounts for exact wording of account titles.

Answers

Answer:

Dr Bonds Payable $500,000

Dr Premium on Bonds Payable $67,000

Cr Gain on Redemption of Bonds $77,000

Cr Cash $490,000

Explanation:

Preparation of the journal entry to Record the redemption of the bonds

Dr Bonds Payable $500,000

Dr Premium on Bonds Payable $67,000

Cr Gain on Redemption of Bonds $77,000

($500,000 + $67,000 - $490,000)

Cr Cash $490,000

(To record redemption of bonds)

Select an organization and identify and evaluate the components of its Strategic Plan (i.e., Vision, Mission, Values, Core Competencies, Goals, Objectives, Action/Implementation Plan, Metrics, etc.) by answering the following questions:
• Does the plan convey an overall purpose and the desired results of the organization, and how to achieve those results?
• Does the Mission Statement clearly explain why the organization exists?• Does the Vision Statement describe where the organization is headed, what it intends to be, or how it wishes to be perceived in the future? Clear, concise, and memorable?• Based on the content of the plan, do you think the plan has adequately considered the strategic environment?
• Do the goals and objectives support the vision, mission, values, core competencies, etc.?
• Is the plan understandable?
• What are your other observations and reactions to the plan? What do you like? What could be improved?

Answers

Answer:

Nestle with a tag line of "Good Food, Good Life" its vision is to enhance quality of life and contribution to a healthier future for all individuals, this vision conveys the plan and results clearly. Nestle is achieving the results by providing good quality food to its consumers.

Explanation:

Nestle with a tag line of "Good Food, Good Life" its vision is to enhance quality of life and contribution to a healthier future for all individuals, this vision conveys the plan and results clearly. Nestle is achieving the results by providing good quality food to its consumers.

Mission statement clearly explains that Nestle exist to provide healthier living for individuals. The vision describes the present and future of the betterment of the health of individuals, the vision is clear concise and memorable.

Environment is going towards better health standards people want a healthier and better quality of life which is connected to Nestle's vision and mission.

The goals of Nestle is set in line with the original mission and vision of the organization .

Nestle is helping with fighting hunger, in the situation of global pandemic Nestle fed more than 8 million people. I think this was a great initiative and this can be further more expanded by regularly feeding those in need and not just during the pandemic.

Categorize each scenario as describing a movement along a demand curve or a shift of the demand curve.

a. College students rush and buy discount furniture to take advantage of a one-day sale
b. Students eat out more often as the federal government increase how much grant money it provides
c. College students reduce how detergent they for each of laundry response to higher detergent prices.
d. College students purchase many more energy drinks during finals week than during the rest of the semester.

Answers

Answer:

a, a movement along a demand curve

b. shift of the demand curve.

c. a movement along a demand curve

d. shift of the demand curve.

Explanation:

Only a change in the price of a good leads to a movement along the demand curve of that good. Also, only a change in the price of the good would lead to an increase or decrease in the quantity demanded of that good.

Other factors other than the change in the price of the good would lead to a shift of the demand curve. Some of those factors include :

1. a change in consumers' expectation

2. a change in the taste of consumers

3. a change in income

a. A discount would reduce the price of furniture, as a result the quantity demanded would increase. There would be a movement down along the demand curve.

b. As a result of the increase in grant, the income of students increase. this would lead to an increase in demand. the demand curve would shift outward

c. As a result of higher prices, the quantity demanded of detergents would reduce. This would lead to a movement up along the demand curve for detergents

d. An increase in demand for energy drinks is as a result of a change in taste. this would lead to an outward shift of the demand curve

Big Corporation receives management consulting services from its 95 percent owned subsidiary, Small Inc. For the year 20X8, Small billed Big $140,000. Small's labor cost and other associated costs for the employees providing services to Big totaled $121,000 in 20X8. Big reported $2,567,000 of income from its own separate operations for 20X8, and Small reported net income of $695,000.
Based on the preceding information, what amount of consolidated net income should be reported in 20X8?
a. $3,262,000
b. $4,050,000
c. $3,254,100
d. $3,122,000

Answers

Answer: a. $3,262,000

Explanation:

Consolidated income is simply the income that both companies got from their separate operations for the year because Small Inc is a subsidiary of Big Corporation so both incomes have to be added to find the total company income:

= 2,567,000 + 695,000

= $3,262,000

During its 2019 fiscal year, a city receives a grant from the state to use on a worthy city project as determined by the city council. No other eligibility requirements exist, but the state requires that the grant proceeds not be spent before the city's 2020 fiscal year. The city council decides to hire a police officer who is to educate young people about the dangers of using illegal drugs. The grant is for $75,000. The state pays the city $75,000 for the grant during its 2019 fiscal year. How should the city report the receipt of the grant proceeds from the state in its Special Revenue Fund?

Answers

Answer:

Dr Cash $75,000

Cr Deferred inflows of resources--grant $75,000

Explanation:

Based on the information given we were told that The GRANT is for the amount of $75,000 in which the The state pays the city the amount of $75,000 for the GRANT during its 2019 fiscal year. Therefore the city should report the RECEIPT OF THE GRANT PROCEEDS from the state in its Special Revenue Fund as:

Dr Cash $75,000

Cr Deferred inflows of resources--grant $75,000

(To record receipt of the grant proceeds)

Suppose that the government imposes a new $1 per-unit tax on the (2pts) production of soft drinks. The result would be a(n)_________in the equilibrium price of soft drinks and a(n) _________in the equilibrium quantity of soft drinks.
a. decrease; increase
b. increase; decrease
c. decrease; decrease
d. increase; increase

Answers

Answer:

b. increase; decrease

Explanation:

In the case when the government impose the $1 per tax unit for the soft drinks production so it should increased the equilibrium price but at the same time it decreased the equibrium quantity as the price and the demand have an inverse relationship that represent the law of demand

So as per the given situation, the option b is correct

The most recent data from the annual balance sheets of Pellegrini Southern Corporation and Jing Foodstuffs Corporation are as follows:
Balance Sheet December 31st (Millions of dollars)
Jing Foodstuffs Pellegrini Southern Jing Foodstuffs Pellegrini Southern
Corporation Corporation Corporation Corporation
Assets Liabilities
Current assets Current liabilities
Cash $4,879 $3,136 Accounts payable $0 $0
Accounts receivable 1,785 1,148 Accruals 1,076 0
Inventories 5,236 3,366 Notes payable 6,096 5,737
Total current assets $11,900 $7,650 Total current liabilities $7,172 $5,737
Net fixed assets Long-term bonds 8,765 7,013
Net plant and equipment 9,350 9,350 Total debt $15,937 $12,750
Common equity
Common stock $3,453 $2,763
Retained earnings 1,860 1,487
Total common equity $5,313 $4,250
Total assets $21,250 $17,000 Total liabilities $21,250 $17,000
and equity
Pellegrini Southern Corporation’s current ratio is___, and its quick ratio is___; Jing Foodstuffs Corporation’s current ratio is___, and its quick ratio is___. Note: Round your values to four decimal places.
Which of the following statements are true?
a. Pellegrini Southern Corporation has less liquidity but also a greater reliance on outside cash flow to finance its short-term obligations than Jing Foodstuffs Corporation.
b. If a company’s current liabilities are increasing faster than its current assets, the company’s liquidity position is weakening.
c. If a company has a quick ratio of less than 1 but a current ratio of more than 1 and if the difference between the two ratios is large, then the company depends heavily on the sale of its inventory to meet its short-term obligations.
d. Pellegrini Southern Corporation has a better ability to meet its short-term liabilities than Jing Foodstuffs Corporation.
e. An increase in the current ratio over time always means that the company’s liquidity position is improving.

Answers

Answer:

Pellegrini Southern Corporation and Jing Foodstuffs Corporation

1. Pellegrini Southern Corporation’s current ratio is_1.3334__, and its quick ratio is_0.7467__; Jing Foodstuffs Corporation’s current ratio is_1.6592__, and its quick ratio is_0.9292__.

2. The true statements are:

a. Pellegrini Southern Corporation has less liquidity but also a greater reliance on outside cash flow to finance its short-term obligations than Jing Foodstuffs Corporation.

b. If a company’s current liabilities are increasing faster than its current assets, the company’s liquidity position is weakening.

e. An increase in the current ratio over time always means that the company’s liquidity position is improving.

Explanation:

a) Data and Calculations:

Balance Sheet December 31st (Millions of dollars)

                                    Jing     Pellegrini                              Jing    Pellegrini

                           Foodstuffs   Southern                     Foodstuffs  Southern  

Assets                                                    Liabilities

Current assets                                       Current liabilities

Cash                           $4,879 $3,136  Accounts payable              $0         $0

Accounts receivable     1,785    1,148  Accruals                         1,076            0

Inventories                   5,236  3,366  Notes payable              6,096    5,737

Total current assets $11,900 $7,650 Total current liabilities $7,172  $5,737

Net fixed assets                                   Long-term bonds         8,765     7,013

Net plant/equipment  9,350  9,350  Total debt                  $15,937 $12,750

                                                            Common equity

                                                            Common stock         $3,453   $2,763

                                                            Retained earnings       1,860      1,487

                                                           Total common equity $5,313  $4,250

Total assets         $21,250 $17,000  Liabilities/Equity       $21,250 $17,000

                                  Jing    Pellegrini

                       Foodstuffs    Southern

Current Ratio:    1.6592       1.3334 (Current assets/Current liabilities)

Quick Ratio       0.9292      0.7467 (Current assets-Inventory/Current Liabilities)

you are planning for your retirement and have decided the following: you will retire in 35 years and would like to have $8,000 per month as retirement income for 30 years of retirement. you have access to an account that earns a 7% rate of return. a. how much will you need to have when you retire to be able to withdraw the desired $8,000 per month during your years of retirement

Answers

Answer:

Amount needed to have in account = 99272

Explanation:

Below are the calculations:

Annual income after retirement, annuity = $8000

The time period or the retirement life = 30 years

The Interest rate earned by account = 7%

The amount in the account at the time of retirement = Annuity (P/A, r, n)

The amount in the account at the time of retirement = 8000 (P/A, 7%, 30)

The amount in the account at the time of retirement = 8000 x 12.409

The amount in the account at the time of retirement = 99272

Identify the financial institution based on each description.

a. They are established by an employer to facilitate and organize employee retirement funds. They are asset pools that invest in securities that have a potential to give stable returns.
b. They underwrite, distribute, and design investment securities for corporations to help them raise capital.
c. They are asset pools that invest in securities that have a potential to give stable returns.
d. They collect a pool of funds from investors for the purpose of diversifying risk, earning interest or dividends, and/or generating profits from the investments' increased value.

Answers

Answer:

a. They are established by an employer to facilitate and organize employee retirement funds. They are asset pools that invest in securities that have a potential to give stable returns. ⇒ PENSION FUNDS.

Pensions are retirement benefits paid to employees when they retire so employers set up funds called Pension funds where they pay in contributions that grow overtime so that they will pay off employees when they retire.

b. They underwrite, distribute, and design investment securities for corporations to help them raise capital. ⇒ INVESTMENT BANKS.

Investment banks play a very big role in the capital markets as they are the ones who help companies raise capital in Initial Public Offerings (IPOs). They help them underwrite, design and distribute the securities as they have an expertise in this.

c. They are asset pools that invest in securities that have a potential to give stable returns. ⇒ PENSION FUNDS

Pension funds grow by investing in securities that will bring in low risk, stable returns so that the retirement benefits of people are safe.

d. They collect a pool of funds from investors for the purpose of diversifying risk, earning interest or dividends, and/or generating profits from the investments' increased value. ⇒ MUTUAL FUNDS

Mutual funds pool money together from various investors and then invest in various companies and industries and returns made are then paid to the investors.

profession in medical are not practiced for money but for public welfare​

Answers

Answer:

That's true but some people do it for money

if a Doctor decrease his price than poor people can get a better health care for them it.

Explanation:

It has been said that a profession is not a trade and not an industry .

yeah

I’m sure different people do it for different reasons. Just like all professions. It does cost a lot of money to become a doctor. Some may practice for less money in the beginning to gain experience. Others may want to become a doctor for prestigious reasons. Each person would have their own reasons from their life experiences.

The information below applies to a competitive firm that sells its output for $40 per unit.

• When the firm produces and sells 150 units of output, its average total cost is $24.50.
• When the firm produces and sells 151 units of output, its average total cost is $24.55.

How does the firm's marginal revenue (MR) compare to its marginal cost (MC) when it increases its output from 150 units to 151 units?
a. MR exceeds MC by $7.95.
b. MR exceeds MC by $11.05.
c. MC exceeds MR by $11.05.
d. MC exceeds MR by $13.50.

Answers

Answer:

A

Explanation:

Marginal cost is the change in total cost when output is increased by 1 unit

total cost = average cost x quantity

Marginal cost = (151 x 24.55) - (150 x 24.50) = 32.05

marginal

Young Corporation is considering purchasing equipment that costs $80,000 and is expected to provide the following cash inflows over its five-year useful life: Year Cash inflow 1 $ 18,000 2 22,000 3 24,000 4 16,000 5 9,000 What is the payback period of this investment project

Answers

Answer:

It will take 4 years to cover the initial investment.

Explanation:

Giving the following information:

Initial investment= $80,000

Cash flows:

1 $ 18,000

2 22,000

3 24,000

4 16,000

5 9,000

The payback period is the time required to cover the initial investment:

Year 1= 18,000 - 80,000= -62,000

Year 2= 22,000 - 62,000= -40,000

Year 3= 24,000 - 40,000= -16,000

Year 4= 16,000 - 16,000= 0

It will take 4 years to cover the initial investment.

Redeker Company purchased equipment on January 1, 2016, for $90,000. It is estimated that the equipment will have a $5,000 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-year life.

Required:
Compute the amount of depreciation expense for the year ended December 31, 2016, using the straight-line method of depreciation

Answers

Answer:

to the end of the sixth year;

b/ The number of years required before the capital stock exceeds $200 000.

If the straight-line method of depreciation were used in the given case, the amount of depreciation expense for the year ending December 31, 2016, would be $17,000.

What is the depreciation?

Depreciation is the measurement for the decline in any assets because over time, wear, use, and tear, or devolution cause an asset's monetary value to drop.

Depreciation, or a decline in asset value, can be brought forward on by a variety of other variables, such as bad market conditions, etc.

Computation of depreciation:

According to the given case,

Equipment Cost = $90,000

Salvage Value = $5,000

Useful Life = 5 years

Depreciation per Year = (Cost of asset – Salvage Value)/5 years

Depreciation per Year = ($90,000-$5,000/5)

Depreciation per Year = $17,000

Therefore, the depreciation as per straight line method would be $17,000.

Learn more about the depreciation, refer to:

https://brainly.com/question/15085226

#SPJ5

Based on recent statistics, which of the following individuals would have the lowest probability of being unemployed?
a. a 45-year-old white male.
b. a 50-year-old white female.
c. a 32-year-old African American female.
d. a 19-year-old African American male.
e. a 17-year-old white female.

Answers

Answer:

a. a 45-year-old white male.

Explanation:

Middle aged white males have the lowest unemployment rate in the United States. Employment ratios for white and asian men are approximately the same,  72.8%, which is higher than any other demographic group. Besides the normal prejudices that exist in society, these two groups also have the highest average education level (i.e. more college years)

Haier has achieved great success in becoming a global leader in the appliance industry and is doing so with these beneficial strategies.

a. True
b. False

Answers

Answer:

a. True

Explanation:

It is correct to say that a company like Haier, which has become a global leader in the household appliance industry segment, has developed a beneficial strategy for success, as entering a global market can be a great challenge for companies, as it requires business, product and services of the company to the local market that includes cultural and social differentiation in the preferences for products and services. So it is correct to say that the company has adopted a beneficial global strategy that gives it significant advantages such as market positioning, cost reduction, greater competitive capacity, greater brand value, increased profitability, etc.

Explain differences between international market and global market?

Answers

Answer:

International marketing means that marketing decisions are made in the individual countries, with staff who is the most knowledgeable about the target markets. Global marketing views the whole world as one, and creates products that will only require weeks to fit into any regional marketplace.

Explanation:

The petty cash fund of the Brooks Agency is established at $250. At the end of the current period, the fund contained $172 and had the following receipts: entertainment, $41; postage, $25; and printing, $12.
Prepare journal entries to record (a) establishment of the fund and (b) reimbursement of the fund at the end of the current period.Identify the two events from the following that cause a Petty Cash account to be credited in a journal entry.
a. Fund amount is being reduced.b. Fund amount is being increased.c. Fund is being eliminatedd. Fund is being established.

Answers

Answer:

a.

Date              Account Title                                  Debit                     Credit

XX-XX-XX     Petty Cash                                   $250

                     Cash                                                                               $250

b.

Date              Account Title                                  Debit                     Credit

XX-XX-XX     Entertainment expense                    $41

                      Postage                                             $25

                      Printing                                              $12

                     Petty Cash                                                                    $  78

Date              Account Title                                  Debit                     Credit

XX-XX-XX     Petty Cash                                       $78

                      Cash                                                                                $78

2. Reasons why a Petty Cash account would be credited:

a. Fund amount is being reduced.

c. Fund is being eliminated

When the fund is being reduced by expenses, it is credited as shown above.

When the fund is to be eliminated, it will be credited so as to remove all the money in it.

If interest rates on the euro are consistently below U.S. dollar interest rates, then for the International Fisher Equation (IFE) to hold between the US and the Eurozone:_________
a) The nominal exchange rate for the euro will remain constant.
b) The euro will depreciate against the dollar The euro will appreciate against the dollar.
c) Purchasing power parity must hold between the dollar and the euro.
d) The euro will remain constant with respect to the dollar.

Answers

Answer:

The euro will appreciate against the dollar.

Explanation:

Since in the given situation it is mentioned that the rate of interest is consistently less than the interest rate of US so here in the IFE, the euro normally appreciated or increased as against the dollar

So as per the given option, the above should be the answer and the same should be relevant

Therefore the rest of the options are considered to be wrong

The Assembly Department started the month with 24,800 units in its beginning work in process inventory. An additional 309,800 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 29,800 units completed and transferred to the next processing department during the month. How many units were in its ending work in process inventory? a. 314,800 b. 334,600 c. 304,800 d. 364,400

Answers

Answer:

c. 304,800

Explanation:

Calculation to determine How many units were in its ending work in process inventory

Using this formula

Ending work in process inventory Units= Beginning work in process inventory Units + Units started into production or transferred in - Units in ending work in process inventory

Let plug in the formula

Ending work in process inventory Units= 24,800 + 309,800 - 29,800

Ending work in process inventory Units = 304,800

Therefore How many units were in its ending work in process inventory is 304,800

Prosecutors representing the Securities and Exchange Commission recentlyannounced criminal charges against 13 individuals for engaging in insidertrading. According to the SECs director of enforcement, a trading ring acting on inside information compromises the marketsintegrity and investorstrust. . . . Explain why.

Answers

Answer and Explanation:

Insider trading compromises the integrity of the market because insider investors have non-public information about the stocks of the company that could very much impact the value of the stock of the company. In other words, an insider knows what the public doesn't know about a company and it allows him an unfair advantage to trade the stocks of the company using this information and make large unusual profit. This could lead to market collapse as investors are no longer encouraged to invest seeing that they can't trust that the market is transparent and trustworthy(they don't have all the important information that would affect the company)

Financial slack:

a. is associated with high leverage
b. allows firms to take advantage of good investment opportunities
c. solves any agency costs when managers want to empire-build
d. is a term that describes a lazy CFO

Answers

Answer:

B

Explanation:

Financial slack is when a firm has unused capacity as a result of debt that is yet to be utilized. It allows firms to take advantage of good investment opportunities

financial slack is usually in the form of unused cash

Other Questions
bine like terms.7 64 5x3 1 + x3 7 2yPLS HURRY Depletion of nonrenewable resources is often a result of? Using the data below for Ace Guitar Company: Region A Region B Sales $786,500 $643,500 Cost of goods sold 298,900 244,500 Selling expenses 188,800 154,400 Service department expenses Purchasing $240,200 Payroll accounting 160,200 Allocate service department expenses proportionally to the sales of each region, determine the divisional income from operations for the Regions A and B. For interim calculations, round the percentages to one decimal place. Region A $fill in the blank 1 Region B $fill in the blank 2 Fragrant Fields Greenhouse sells rose bushes for $19.90 each. Last weekend, they made $477.60 on rose bushes. How many rose bushes did they sell? Given the following equation x2 + 12x = x - 24 find the solutions. (Show All Work)16a) Set the equation equal to 0 by inverse operations.16b) Place the equation in factored form.16c) Set each factor equal to 0 and solve for x. HELP HELPPP!!!- 3|+- 33What is the common denominator of y+3in the complex fraction5 29* ?( 3)( 3) 3 How many outfits are possible if you can choose one from each of four shirts, three pairs of pants, two pairs of shoes, and two jackets? In the diagram below, DE is parallel to XY. What is the value of y?8100yaO A. 120B. 100oC. 80oD. 60PREVIOUS Name the marked angle in 2 different ways. State the domain and range of the function graphed below!!!! John spends $94 to buy packages of cleaning supplies for a camp. He buys t packages oftowels, each package is $6 and contains 8 towels. He also buys s packages of soap; eachpackage is $4 and contains 10 bars of soap. John buys 20 packages of cleaning suppliesaltogether. Write a system of equations to represent the packages of cleaning supplies Johnbuys What is the initial pressure of a gas if its occupied a volume of 0.375 L but now occupies a volume of 1.25 L at a pressure of 95.5 K PA Explain why World War II was a total war. If you put 700 into a savings account that's earns 1% interest compound monthly how much will you have in 5 years Two oppositely charged objects are separated by a small distance. The objects are then moved three times farther apart from each other. Which of the following statements best describes what happens to the electrical force between the objects?A: The force of attraction increasesB: The force of attraction decreases C: The force of attraction stays the sameD: The force of attraction becomes a force of repulsion What are the 2 \ 3 parts of a right angle in a whole wheel? Given that X = - 2 and y = 4 , Evaluate the expression. 5y 4x What's another word we can use instead of "Ol' Higue? state the principle of quantization of charge ppose we are testing a new shampoo to see if it makes hair grow faster. We knowthat the average rate of hair growth is 0.5 inches per month. The hypothesis are as follows:H0:m0:5vs.H1:m>0:5. Suppose that the null hypothesis is not rejected and that thereal truth is that the shampoo actually does make hair grow faster. What type of error, if any,occurred?