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labwork [276]
3 years ago
11

Which of the following is not true regarding economic exposure? a. The impact of a change in the local currency on inflow and ou

tflow variables can sometimes be indirect and therefore different from what is expected. b. In general, depreciation of the firm's local currency causes a decrease in both cash inflows and outflows. c. Even purely domestic firms can be affected by economic exposure. d. The degree of economic exposure will likely be much greater for a firm involved in international business than for a purely domestic firm.
Business
1 answer:
Natali [406]3 years ago
8 0

Answer:

Option A The impact of a change in the local currency on inflow and outflow variables can sometimes be indirect and therefore different from what is expected.

Explanation:

The reason is that the changes in the currency exchange rate in which the company receives the payment and is also not a home currency, such risk exposure is known as economic exposure. So the only option that correct here is option A.

Option B is incorrect because depreciation is non cash item and it is not exposed to currency fluctuations.

Option C and D are also incorrect because domestic firms don't face any economic exposure.

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Use the following information to prepare the September cash budget for PTO Co. The following information relates to expected cas
dolphi86 [110]

Answer:

Begining Cash               40,000

receipts from sales      255,000

payment to supplies    (104,500)

payment of wages         (40,000)

other cash expenses<u>     (60,000)   </u>

Ending Cash                    90,500

Explanation:

raw materials disbursment for the month of september

80,000  x 35%  =  28,000 for August purchases

110,000  x 65%  =  <u> 71,500 </u>for September purchases

Total payment      104,500  

the depreciation and accrued expenses along with the interest payable (which are also a accrued expense) will not be included as they don't represent neither a cash inflow nor outflow.

8 0
3 years ago
Ankar notices that one
zepelin [54]

Answer:

What

Explanation:

6 0
2 years ago
g Unearned revenues are classified as: Group of answer choices Assets. Liabilities. Revenues. Stockholders' equity.
NemiM [27]

Answer:

Liabilities

Explanation:

Unearned revenues are written as liabilities in the balance sheet of a firm. They are regarded as liabilities because the revenue is still unearned. An example is advance rent payment.

It is a prepayment for a good or service that has not been rendered to the customer yet by the provider. The provider or seller now has a liability equal to the revenue they have received till they provide that service for which they were paid

7 0
2 years ago
Store A purchases cases of fertilizer for its lawn-care business from a supplier who charges Store A $30 per order and $50 per c
Lapatulllka [165]

Answer:

20

Explanation:

Calculation for average inventory level

Using this formula

Average inventory level=Store A's order quantity/2

Let plug in the formula

Average inventory level = 40 cases /2.

Average inventory level= 20

Therefore the Average inventory level will be 20

6 0
3 years ago
What does a general disk cleanup do?
vodka [1.7K]
A general disk cleanup removes unnecessary files (C). 
While the general disk cleanup is active, the utility first looks for/inspects the hard drive for files that are useless, then will remove those files. 

I hope this answers your question, good luck on your assignment. 

7 0
3 years ago
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