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tatuchka [14]
3 years ago
8

Yang Corporation starts a foreign subsidiary on January 1 by investing 25,000 rand. Yang owns all of the shares of the subsidiar

y’s common stock. The foreign subsidiary generates 50,000 rand of net income throughout the year and pays no dividends. The rand is the foreign subsidiary’s functional currency. Currency exchange rates for 1 rand are as follows: January 1 $0.25 = 1 rand Average for the year 0.28 = 1 December 31 0.31 = 1 In preparing consolidated financial statements, what translation adjustment will Yang report at the end of the current year?
Business
1 answer:
Lisa [10]3 years ago
4 0

Answer:

$3,000 credit

Explanation:

Given the followin currency exchange rates for 1 rand are as follows:

January 1 $0.25 = 1 rand

Average for the year 0.28 = 1

December 31 0.31 = 1

Net income conversion Investment using January 1 rate = 50,000 rand × $0.25 = $12,500

Net income conversion Investment using December 31 rate = 50,000 rand × $0.31 = $15,500

Credit (Debit) = $15,500 - $12,500 =$3,000

Therefore, the translation adjustment that Yang will report at the end of the current year is $3,000 credit since the difference is positive.

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Employers can try to overcome the moral-hazard problem involving their employees by:
BartSMP [9]

Answer:

Option D             

Explanation:

In simple words, moral hazard refers to the situation when an individual do not act with full responsibility due to the fact that any loss from their behavior will be borne by some third party.

Thus, by assessing the employees before employment by a test will help to decide the employer if the individual is worthy of the job or not. Thus, efficient employees will be selected and less mistakes will occur.    

5 0
3 years ago
Marigold Corp. reported the following year-end information: beginning work in process inventory, $90000; cost of goods manufactu
Stels [109]

Answer:

=$854,000

Explanation:

The cost of goods sold is the expense incurred by a manufacturing firm when making goods to be sold to customers. It is calculated using the formula.

Cost of goods sold = Beginning Stock plus purchases/ cost of goods manufactured minus  ending stock

Marigold Corp:

Beginning stock: $162,000

Ending stock: $174,000

cost of goods manufactured, $866000;

cost of goods sold =

$162,000 + 866,000 -$174,000

=$854,000

7 0
3 years ago
Which of the following behavior patterns may be a characteristic of minors
Schach [20]

Answer:

Self conscious about appearance

Explanation:

A minor is a usually adopted as term used to make distinction between an adult who can take up legal responsibilities and a child who legally below the specified age of the majority or adulthood. Distinction between minors and adulthood is usually based on the age of the individual. Person below the age of 18 in most countries are considered as minor. They possess certain characteristics which may include excessive consciousness about looks and trying to avoid eyes contact as much as possible.

7 0
3 years ago
Given below is a numbered list of cost terms. For each of the definition statements that follow, place the number of the cost te
leva [86]

Answer:

The correct answers are the following:

a - 4 Sunk

b - 5 Opportunity

c - 3 Fixed

d - 2 Variable

e - 6 Incremental

f - 1 Recurring

g - 7 Direct

h - 8 Non-recurring

Explanation:

a) <em>Sunk costs</em> are those that have already occurred in the past and they can not be recovered again so therefore that they are not relevant at the time of taking decisions regarding the futue.

b) <em>Opportunity costs</em> are those that try to measure and show the sacrifice done at the time of making a decision when that sacrifice represents the best second option that the person could have done.

c) <em>Fixed costs</em> are those that are always the same amount and do not change with the activity level of the production of the company.

d) <em>Variable costs</em> are those that do change with the amount of activity level that the company has during the production process.

e)<em> Incremental costs</em> are those that increase the cost level of the production while the output level increases as well, so they are a concept on the margin.

f) <em>Recurring costs</em> are those that tend to repete continously in the production process so the company already know how much the amount of the cost is.

g) <em>Direct costs</em> are those that the company associates with the production process regarding the commodities and all the primary sources that are needed to produce the good and therefore that they impact directly in the production and in the cost of the final product.

h) <em>Non-recurring</em> costs are those that the company are not familiar with due to the fact that they do not repete often and therefore tend to happen once in a while.

4 0
3 years ago
In which of the following cases is outsourcing likely to be the best solution to the firm's data processing needs? a) Peterson I
Alex73 [517]

Answer:

a) Peterson International is a trenchcoat wholesaler to retailers around the world. Sixty percent of sales orders are taken during the months of August and September. Peterson needs a system to manage online ordering and fulfillment.

Explanation:

Outsourcing likely to be the best solution to the firm's data processing needs because Peterson International is a trenchcoat wholesaler to retailers around the world. Sixty percent of sales orders are taken during the months of August and September. Peterson needs a system to manage online ordering and fulfillment.

5 0
3 years ago
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