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11 months ago

Purely domestic firms will be at a disadvantage to mnes in the event of market disequilibria because

1 answer:

8 0

Purely domestic firms will be at a disadvantage to men's in the event of market disequilibria because domestic firms lack comparative data from its own sources.

<h3>What are domestic firms?</h3>

Most or all of the operations of domestic companies are conducted within the US. They might export goods or import supplies, but these activities often make up a modest portion of overall corporate activity. US securities regulations primarily apply to domestic enterprises. Typically, their financial reports are created using widely accepted accounting principles (GAAP).

To know more about domestic firms visit:

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Notes or accounts receivables that result from sales transactions are often called A. non-trade receivables.B. trade receivables

oksian1 [2.3K]

Answer:

B. trade receivables

Explanation:

Trade receivables are amounts billed by a company to its clients when it delivers goods or services to them in the ordinary course of business, not been collected at the sale moment, but in the future. This may or may not include interest.

Instead, non-trade receivables are amounts owed to the company that falls outside of the normal course of business, such as employee advances or insurance reimbursements.

7 0

3 years ago

Board Company has a foreign subsidiary that began operations at the start of 2017 with assets of 155,000 kites (the local curren

vovikov84 [41]

Answer:

a. The Board would report translation adjustment of -$3,138.

b. See the journal entries and explanation below.

c. Net translation adjustment is -$1,138.

Explanation:

a. Assume that the kite is this subsidiary's functional currency. What translation adjustment would Board report for the year 2017?

Note: See the attached file for the calculation of translation adjustment.

The board would report a negative (debit) translation adjustment of $3,138. That is,

Translation adjustment = -$3,138

b. Assume that on October 1,2017, Board entered into a forward exchange contract to hedge the net investment in this subsidiary. On that date, Board agreed to sell 200,000 kites in three months at a forward exchange rate of $0.76/1 kite. Prepare the journal entries required by this forward contract.

Board Company

Journal Entries

Date Account titles and Explanation Debit ($) Credit ($)

01 Oct 17 (No entry)

12 Dec 17 Forward contract 2,000

Translation adjustment (positive) (w.1) 2,000

(To record forward contract change in the value to adjust translation adjustment.)

12 Dec 17 Foreign currency (kites) (w.2) 152,000

Cash 152,000

(To record 200,000 kites purchased at the spot rate of $0.76)

12 Dec 17 Cash 154,000

Foreign Currency (kites) 152,000

Forward contract 2,000

(To record 200,000 kites delivered, $154,000 received, and close the forward contract account.)

Workings:

w.1: Translation adjustment = Number of kites agreed to sell in three months * (Agreed exchange rate on October 1, 2017 per kite - Exchange rate on December 1, 2017) = 200,000 * (0.76 - 0.75) = $2,000

w.2: Foreign Currency (kites) = Number of kites agreed to sell in three months * Agreed exchange rate on October 1, 2017 per kite = 200,000 * 0.76 = $152,000

c. Compute the net translation adjustment for Board to report in Accumulated Other Comprehensive Income for the year 2017 under this second set of circumstances.

This can be calculated as follows:

Net translation adjustment = Negative translation adjustment in part a + Positive translation adjustment in part b (i.e. w.1) = -$3,138 + 2,000 = -$1,138

Therefore, net translation adjustment is -$1,138.

Download xlsx

8 0

3 years ago

Which two of these rules could be included in a company’s acceptable use standards?

Dmitry_Shevchenko [17]

It would be, B and E.

7 0

3 years ago

Read 2 more answers

Warren Company began the accounting period with a $32,000 debit balance in its accounts receivable account. During the accountin

ra1l [238]

Answer:

The answer is : $104,000

Explanation:

First, we have to lay out the particulars, and explain what each of them mean:

debit balance in account receivable = $32,000. This refers to an amount that cusomers owed the company at the beginning of the period.

revenue recorded = $88,000. This refers to the total sales made by the company.

At the end of the period, we are told that the account receivable contained a balance of $16,000

Therefore it means that after all the payments (both balance from previous period and sales transactions) have been made in cash, the amount which the customers owed the company = $16,000.

Hence the cash collected is calculated as follows

(debit balance at beginning + revenue) - debit balance at the end = cash collected

(32,000 + 88,000) - 16,000 = cash collected

120,000 - 16,000 = cash collected

cash collected = $104,000

6 0

2 years ago

On January 1, year 1, Dave received 1,000 shares of restricted stock from his employer, RRK Corporation. On that date, the stock

butalik [34]

Answer:

Taxes on January 1, year 1= $1400

Taxes on Dec 31, year 4=$3300

Explanation:

The question relates to 'EQUITY GRANT', which is some sort of compensation given to somebody, especially/specifically to employees of an entity provided that certain conditions/vesting requirements are satisfied by the employee.

Now on January 1, year 1 Dave has received 1000 shares, for him the shares received is treated is income for Dave, as the shares are being offered against certain services rendered by Dave to RRK corporation. So on January 1 Dave would record income and pay income tax as follows:

Value of shares on Jan 1/ income= 1000×$7

Value of shares on Jan 1/ income= $7000

Lets assume income tax is 20% and marginal tax rate is 10%, the tax consequences would be as follows:

TAXES = $7000×20%

TAXES = $1400

There will be no tax consequences at the vesting date and at the end of year 4 (the date when he sells them) there will be tax consequences of $4000.

At year 4 = 1000×$40

Amount realized= $40000 -$7000

Taxes at marginal rate= $33000×10%

Taxes at marginal rate= $3300

(Note: $7000 is subtracted because it's already present in $40000).

8 0

3 years ago