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3 years ago

Which financial activity helps a company based in another country

Business

1 answer:

Lady_Fox [76]3 years ago

5 0

Answer:

The correct answer is A

Explanation:

The financial activity is that activity which is undertaken by companies in order to accomplish their economic objectives and goals.

FDI (Foreign direct investment), which is an investment that is controlling the ownership or possession of the business in one country by an entity in another country.

Therefore, the FDI is the one activity which will help the company based in another country.

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Tanner-UNF Corporation acquired as a long-term investment $200 million of 7% bonds, dated July 1, on July 1, 2018. The market in

likoan [24]

Answer:

1. Prepare the journal entry to record Tanner-UNF’s investment in the bonds on July 1, 2018 and interest on December 31, 2018, at the effective (market) rate.

July 1, investment in UNF bonds

Dr Investment in bonds HTM 200,000,000

Cr Cash 160,000,000

Cr Discount on bonds 40,000,000

December 31, interest revenue from investment in bonds

Dr Cash 7,000,000

Dr Discount on bonds 200,000

Cr Interest revenue 7,200,000

Discount on bonds = ($160,000,000 x 4.5%) - ($200,000,000 x 3.5%) = $7,200,000 - $7,000,000 = $200,000

2. Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2018, balance sheet.

Investment in bonds HTM = $200,000,000 (face value) - $39,800,000 (discount on bonds) = $160,200,000

Changes in the market value of bonds held to maturity are not considered by the company.

4. Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2019, for $310.0 million. Prepare the journal entry to record the sale.

Dr Cash 150,000,000

Dr Dr Discount on bonds 39,800,000

Dr Loss on investment in bonds HTM 10,200,000

Cr Investment in bonds HTM 200,000,000

3 0

3 years ago

The time it takes for a new policy to register its full impact on the economy after it has been put in force is known as the

Elan Coil [88]

The answer is effectiveness lag. The effectiveness lag is where the desired result that they are waiting for is based on the amount of time that it would take in terms of the monetary policies or the fiscal effect to produce.

7 0

3 years ago

A company produces a cardboard box in the shape of a cube. The surface area of the box is represented by S=6x2, where x is the e

nydimaria [60]

Answer:

x = $\sqrt{\frac{S}{6} }$ or $( \frac{S}{6} )^{\frac{1}{2} }$

Explanation:

The cardboard box is in the shape of a cube. The surface area of the box is given by:

S = 6 $x^{2}$

To find the inverse, we have to solve for x. To solve for x means we will make x the subject of the equation above

Divide both the right and left hand side by 6, we have:

6 $x^{2}$ ÷ 6 = S ÷ 6 ⇒ $x^{2}$ = $\frac{S}{6}$

$x^{2}$ = $\frac{S}{6}$

Take the square root for both the right and left hand side, we have:

$\sqrt{x^{2} }$ = $\sqrt{\frac{S}{6}}$ ⇒ x = $\sqrt{\frac{S}{6}}$

x = $\sqrt{\frac{S}{6} }$ or $( \frac{S}{6} )^{\frac{1}{2} }$

Therefore, x is equivalent to the square root of (S/6)

7 0

4 years ago

Read 2 more answers

From an economic perspective, a student’s decision to go to the movies instead of studying for a test indicates that in the stud

shepuryov [24]

Answer:

It means that the marginal cost of going to the movies is less than the marginal benefit of going to the movies.

Explanation:

If the student chooses to go to the movies, it means that he thinks he has less to lose when he foregoes studying for a test. Even though logically it may appear that the latter would be a better option, according to him, the 2 or so hours at the movies would provide an extra value like if he went with a family member who he cares about. That probably beats the cost of staying up late to revise for the test.

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3 years ago

Which of the following is a capital expenditure? Payment of an account payable. Retirement of bonds payable. Payment of Federal

marusya05 [52]

Answer:

The correct answer is the last option: None of these answers are correct.

Explanation:

To begin with, the name of "Capital Expenditure", in the field of business refers specifically to the money that a company spends with the purpose to buy, maintain or improve its fixed assets. Therefore that it is quite simple to recognize the assets that are considered to be capital expenditure due to the fact that they are the ones in which the money is spended in order to extend the useful life that they have or when they are recently new and intend to stay in the company for a considerable period of time. Examples of capital expenditure are: vehicles, buildings, equipments or land.

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3 years ago