Answer: C) can denominate the sale in either currency and use the foreign exchange market to convert currency
Explanation:
The options to the question are:
A) will denominate the sale in its own currency since it is too hard to convert foreign currency
B) will denominate the sale in the currency of the buyer since it is too hard for them toconvert foreign currency
C) can denominate the sale in either currency and use the foreign exchange market to convert currency
D) can use the OTC market to convert receipts in the future and the exchange markets to convert receipts in the spot market.
Since the company from Country A I the one selling merchandise to the company from Country B, it means that the company from Country A can denominate the sale in either currency and use the foreign exchange market to convert currency.
Answer:
either a rise in output or a fall in velocity.
Explanation:
As per the quantity equation, if the level of the price would varies and less than the increase in the money supply so there should be either a rise in the output or the decline in the velocity
The quantity equation is
MV = PY
where
M denotes money supply
V denotes velocity
P denotes price level
Y denotes output
As the money supply would increase so it would be balance when there is a decline in a velocity or increase in output so that the price would remains the same
hence, the above represent the answer
Answer: Option D
Explanation: In simple words, unearned revenue refers to the liability account that depicts the cash that is received in the current for the supply of good or service that will be made in some future period.
For example- a door to door newspaper seller taking advance subscription fees for one year or any event organizing committee taking advance money for tickets of a concert that will happen in the future.
Such incomes can only be recognized when the intended service is completed for the customer.
Answer:
The correct answer is 44.73 days or 45 days.
Explanation:
According to the scenario, the computation of the given data are as follows:
We can calculate the day's sales uncollected by using following formula:
Day's sales uncollected = No. of days in year ÷ Debtor turnover ratio
Where, Debtor turnover ratio = Sales ÷ Accounts receivable
= $607,500 ÷ $74,422
= 8.16
So, by putting the value, we get
Day's sales uncollected = 365 days ÷ 8.16
= 44.73 days or 45 days.
Sue works as a salesperson in a clothing store. She earns $7.25 per hour plus COMMISSION, which is based on her sales revenue.
Types of Sales Commissions:
1) Gross profit commission - based on gross profit (sales - cost)
2) Revenue Commission ⇒ Sue's commission
3) Placement Fees - fixed amount on every unit sold
4) Revenue Gates - based on performance
