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Kobotan [32]
3 years ago
5

On December 12, year 1, Imp Co. entered into three forward exchange contracts, each to purchase 100,000 euros in ninety days. Th

e relevant exchange rates are as follows: Spot rate Forward rate (for March 12, year 2) November 30, year 1 $.87 $.89 December 12, year 1 $.88 .90 December 31, year 1 $.92 .93 At December 31, year 1, what amount of foreign currency transaction loss should Imp include in income from the revaluation of the Accounts Payable of 100,000 euros incurred as a result of the purchase of inventory at November 30, year 1, payable in March year 2?
Business
1 answer:
timama [110]3 years ago
6 0

Answer:

40.000

Explanation:

I think your approach is not clear at all, but your question is.

So if you have bought merchandise worth 100,000 euros but your records are in other currencies, you must take the exchange rate at the time of the operation, this is $ 0.89. You will register

Inventorty 890.0000

accounts paylable     890,000

At the close of the fiscal year your liabilities must be valued at the official exchange rate, in this case it is $ 0.93

then your foreign currency debt increases, but not your inventory, the other account that is used is a negative result for this rate change

loss exchange rate    40,000

accounts paylable                     40.000

in the valuation of liabilities the seller exchange rate is used

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How can you differentiate between various economic systems that exist
liubo4ka [24]

Answer:

An economic system is defined by the way scarce resources are distributed in an economy.

There are 4 types of major economic systems which are following;

  1. A mixed economy is an economic system, like its name is a mix of elements of planned economies, free markets with intervention of the state and public enterprises.
  2. A command economy is a system where the government is key decision maker of what goods and services will be produced and introduced by the economy.
  3. A market economy is the one in which the investment, production and distribution are dictated by the forces of demand and supply.
  4. A traditional economic system is a result of customs, history and cultural norms which include the rules and manner of their distribution as well.
3 0
3 years ago
Benton Engineering Services Company incurred the following during 2016 Direct labor $94,000 Overhead 126,000 Selling expenses 11
Galina-37 [17]

Answer:

Prime cost = $94,000

<em>Conversion cost</em> =  $135,400.

Explanation:

<em>Prime cost is the addition of direct material cost , direct labor cost and direct expenses.</em>

<em>Conversion cost is the cost of converting raw materials into finished product. It s the sum of direct labour cost and production overheads.</em>

For Bento Engineering,

<em>Prime cost = direct labour cost  (since no figure is given for direct material and direct expenses.)</em>

Prime cost = $94,000

Conversion cost = Direct labour cost + overheads

<em>Conversion cost</em> = $94,000 + 126,000

                          =  $135,400.

Prime cost = $94,000

<em>Conversion cost</em> =  $135,400.

8 0
3 years ago
Midyear on July 31st, the Chester Corporation's balance sheet reported:
erastova [34]

Answer:

$76.856 million

Explanation:

As we know that Balance sheet is divided in two portions.

1. Total Assets (Current Assets + Fixed Assets)

2. Total Liabilities and Share Holders' Equity.

and they both should be equal. So we can write from the above information, as:

Total Assets = Total Liabilities + Total Common Stock + Retained Earnings

N.B. We are excluding Cash from our calculation cause we assume that Cash is already been included in Total Assets.

Hence, by putting the values in above equation we can find our Retained Earnings as:

Retained Earnings + $128.230 million + $6.350 million = $211.436 million

Retained Earnings + $134.58 million = $211.436 million

Retained Earnings = $211.436 million - $134.58 million

Retained Earnings = $76.856 million

6 0
3 years ago
Which of the following is NOT a valid condition for denying a patent application?Select one:
prohojiy [21]

Answer:

The answer is a. The "invention" sought to be patented is actually a living creature.

Explanation:

That is the answer. Because by the law, you actually "CAN" patent a living creature or an organism that you invented and that does not exist naturally.

So, a patent application CAN NOT be denied on the grounds that the invention is a living thing.

However, if a plant or any organism exists in nature and has reproduced, then it cannot be patented. Because then it has become a natural occurrence. This is a stern limitation and a criteria put on patents for living organisms.

Patenting living organism such as anti bacteria and bacteria is common in pharmaceutical industry while patenting unique seed types are common in agricultural sector.

4 0
3 years ago
Accrued salaries owed to employees for October 30 and 31 are not considered in preparing the financial statements for the year e
alexgriva [62]

Answer:

Indication of items erroneously stated on:

A) the income statement for the year

Salaries Expense will be understated.

Therefore, the Net Income will be overstated.

B) the balance sheet as of October 31:

Salaries Expense Payable (current liabilities) will be understated.

Explanation:

When accrued salaries are not accounted for in the financial statements for an accounting period, it means that the revenues generated for that period are not being matched with the expenses incurred in generating the revenues.  Such omission does not agree with the accrual concept and the matching principle of generally accepted accounting principles.  These require that expenses are accrued whether paid for or not, and that expenses are matched to the period's revenue since they are necessarily incurred in generating such revenue.

7 0
2 years ago
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