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Nuetrik [128]
3 years ago
10

Assume the global economy consists of just two trading partners, the United States and Europe. Determine whether each scenario b

elow corresponds to the United States having a trade deficit, balanced trade, or a trade surplus. U.S. Trade deficit.
a. The value of European assets purchased by Americans exceeds that of American assets purchased by Europeans.
b. In the United States, the sum of private savings and government savings is less than private investment.
c. Europeans purchase more goods and services from the United States than Americans purchase from Europe.
d. Net foreign investment for the United States is positive.
e. Net exports for Europe arc zero.
f. Exports from the United States equal imports into the United States.
Business
1 answer:
lyudmila [28]3 years ago
3 0

Answer:

United States and Europe

Determination of United States having a trade deficit, balanced trade, or a trade surplus:

a. Trade surplus (investment surplus)

b. No effect on trade surplus or deficit

c. Trade surplus

d. Investment surplus

e. Balanced trade

f. Balanced trade

Explanation:

The United States experiences a trade surplus when its exports to Europe is higher than the imports from Europe, whether it is for goods, services, or investments.

On the other hand, the United States will experience a trade deficit when its imports from Europe are more than its export to Europe.

The US and Europe will have some advantages and disadvantages to having a trade deficit or surplus.  When the US experiences a surplus, the exchange rate between the two continents increases in favor of the US.  However, there will a reduction of the competitiveness of the US exports as higher prices will be incurred by Europe for US exports.

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Greenwell Farm Equipment sells a tractor to Farmer for $130,000 on January​ 1, 2019. The tractor is delivered that day. Greenwel
agasfer [191]

Answer:

Present value of interest is $5,062 and future value is $5,796        

Explanation:

The formula for finding the Present value of the interest reported as revenue is calculated as under:

Present Value of $40,000 receivable in 2 years = $40,000 / (1+7%)^2

Present Value of $40,000 receivable in 2 years = $34,938

The difference of the future value receivable and present value of the future amount receivable is the interest's present value which is given as under:

Interest Present value = $40,000 - $34,938 = $5,062

Using the compounding formula, the future value of the interest that will be recorded in the financial statement will be = $5,062 * (1 + 7%)^2 years

Future value of interest = $5796

7 0
2 years ago
Puvo, Inc., manufactures a single product In which variable manufacturing overhead is assigned on the basis of standard direct l
pantera1 [17]

Answer:

I'm figuring this out for you!

Explanation:

8 0
3 years ago
Each of the following situations occurred during 2011 for one of your audit clients:1. The write-off of inventory due to obsoles
In-s [12.5K]

Answer:

Situations during 2011 at an Audit Client

A. Appropriate Reporting Treatments:

1. Write-off of inventory due to obsolescence.

a. As an extraordinary item.

2. Discovery that depreciation expenses were omitted by accident from 2010's income statement.

c. As a prior period adjustment.

3. The useful lives of all machinery were changed from eight to five years.

f. As a change in accounting estimate.

4. The depreciation method used for all equipment was changed from the declining-balance to the straight-line method.

g. As a change in accounting estimate achieved by a change in accounting principle.

5. Ten million dollars face value of bonds payable were repurchased (paid off) prior to maturity resulting in a material loss of $500,000. The company considers the event unusual and infrequent.

b. As an unusual or infrequent gain or loss.

6. Restructuring costs were incurred.

b. As an unusual or infrequent gain or loss.

7. The Stridewell Company, a manufacturer of shoes, sold all of its retail outlets. It will continue to manufacture and sell its shoes to other retailers. A loss was incurred in the disposition of the retail stores. The retail stores are considered components of the entity.

e. As a discontinued operation.

8. The inventory costing method was changed from FIFO to average cost.

d. As a change in accounting principle.

B. Inclusion in the Income Statement:

1. CO

2. RE

3. CO

4. RE

5. BC

6. BC

7. BC

8. CO

Explanation:

1. Investopedia.com defined "Unusual or infrequent items" as "gains or losses from a lawsuit; losses or slowdown of operations due to natural disasters; restructuring costs; gains or losses from the sale of assets; costs associated with acquiring another business; losses from the early retirement of debt; and plant shutdown costs."

2. Extraordinary gains or losses are economic events which originate from continuing infrequent and unusual operations.  These gains and losses stem from the normal business activities of the company, but, they do not happen regularly, and are abnormal in nature.

3. A prior period adjustment is the correction of a past accounting error that occurred in the past financial statements.

4. According to investopedia.com, "A change in accounting principle is a change in how financial information is calculated, while a change in accounting estimate is a change in the actual financial information.  Changes in accounting principles are done retroactively, where financial statements have to be re-stated.  But, changes in estimates are not applied retroactively.

6 0
3 years ago
Michael Chang buys only tennis rackets during a particular year. During the year in question, the price of all goods rises by 10
Zolol [24]

Answer:

Michael does not experience inflation because he only buys Tennis rackets

Explanation:

Inflation is defined as increases in price per unit price.

It is the prolonged increase in the price of goods and services caused by devaluation of currency , demand -pull or cost - push. While a certain degree of inflation can be beneficial to a thriving economy , it can become a threat if it becomes larger.

One of the direct impact of inflation is rise in price of goods and services.

As the price of rackets was not affected by the inflation , that means that Michael was not affected by the inflation.

6 0
2 years ago
he St. Augustine Corporation originally budgeted for $360,000 of fixed overhead at 100% normal production capacity. Production w
OLga [1]

Answer:

$9000 (unfavorable).

Explanation:

Given: Budgeted fixed overhead= $360000.

          Actual fixed overhead=$ 360000.

          Actual production= 11,700 units.

         The variable overhead rate was $3 per hour.

         The standard hours for production were 5 hours per unit.

The fixed factory overhead volume variance is difference between actual production volume and budgeted production. It help in measuring the effecient use of fixed resources. It is termed as favourable if actual fixed overhead exceed the budgeted amount, however, it is unfavorable if the actual fixed overhead is less than budgeted amount.  

Now, lets calculate the Actual fixed overhead cost.

Actual fixed overhead cost= \textrm{actual fixed overhead}\times \frac{Actual\ production}{Budgeted\ production}

∴ Actual fixed overhead cost= \$ 360000\times \frac{11700}{12000} = \$ 351000.

Actual fixed overhead cost= $351000.

Next calculating the fixed factory overhead volume variance.

The fixed factory overhead volume variance= \textrm{Actual fixed overhead cost}-\textrm{budgeted fixed overhead}

We know, Budgeted fixed overhead= $360000 and Actual fixed overhead cost= $351000

∴ The fixed factory overhead volume variance= \$351000-\$360000= \$ 9000 (unfavorable)

The fixed factory overhead volume variance= $9000 (unfavorable)

6 0
3 years ago
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