1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
G. How trustworthy do you think the secondary source is? Do you think this source
melomori [17]

Answer: The secondary source on a topic may be biased because the information is translated and the text and information could be altered

Explanation:

3 0
3 years ago
The PE ratio: Assuming Net Income for the year is $250,000, what is the net cash flows from operating activities given the follo
solmaris [256]

Answer:

Net operating cash flow = $189,250

Explanation:

Particulars                                    Amount$

Net income                                    250,000

Add:depreciation expense           9,500

Add:loss on sale of asset              1,250

Add:increase in salary payable    19,500

Less:increase in prepaid rent       (27,500)

Add:increase in AP                        29,500

Less:increase in inventory            <u>(93,000)</u>

Net operating cash flow              <u>$189,250</u>

4 0
3 years ago
What distinguishes open-ended credit from closed-ended credit?
KiRa [710]

Open-ended credit is credit that can be used repeatedly.

Example: A credit card

Close-ended credit is credit that has to be paid in full by a certain date

Example: A house loan (mortgage)

6 0
2 years ago
Read 2 more answers
Alamo Inc. had $300 million in taxable income for the current year. Alamo also had a decrease in deferred tax assets of $30 mill
scoray [572]

Answer:

$ 210 million

Explanation:

Data provided :

Taxable income for the current year = $ 300 million

Tax rate of the income  = 40%

therefore, the income tax for the current year = 0.40 × $ 300 million

or

the income tax for the current year = $ 120 million

Decrease in the deferred tax assets = $ 30 million

Increase in the deferred tax liabilities = $ 60 million

Hence,

the total income tax expense for the year

= $ 120 million + $ 30 million + $ 60 million

or

= $ 210 million

7 0
3 years ago
The most important economic agents that affect the economy through saving and spending are A. households and​ corporations, via
Alex

Answer: Households and corporations, via their transactions.

Explanation: An economic agent is a major influencer of the economy, they are major determining factors, to which the direction of a country's economy would swing.

The economic agents influence the economy through their transactions of regular buying and selling of products, shares, stocks, and Services.

Examples of economic agents are regular household members, companies, businesses.

3 0
3 years ago
Other questions:
  • The promotional budget will clarify how much can be spent on advertising and personal selling.
    15·2 answers
  • What is a way to protect your social security number and other sensitive information from identity theft?
    6·2 answers
  • The following events apply to Gulf Seafood for the 2018 fiscal year: The company started when it acquired $60,000 cash by issuin
    14·1 answer
  • Your firm needs a computerized line-boring machine that costs $90,000 and requires $16,000 in maintenance costs for each year of
    14·1 answer
  • A small company that manufactures special-order wood furniture has kept its employees busy on a 40-hour-a-week schedule for the
    7·1 answer
  • Now, suppose that, rather than immediately lending out all excess reserves, banks begin holding some excess reserves due to unce
    7·2 answers
  • For each of the following items, indicate whether it would be classified as an (O) operating activity, an (I) investing activity
    5·1 answer
  • On January 1, 20X6, Nichols Corporation issued 10-year bonds at par to unrelated parties. The bonds have a 10% stated rate, face
    6·1 answer
  • A baseball team plays in a stadium that holds 54,000 spectators. With the ticket price at $10, the average attendance at recent
    10·1 answer
  • The top five cities where venture capitalists are investing their money represent 10% of the global total.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!