Answer:
(C) debit to Foreign-Currency Transaction Loss-$1040
Explanation:
Foreign currency related Financial assets and financial liabilities are usually revalued with any difference as a result of the exchange rates posted as a gain or loss in the income statement.
On transaction date, cost of assets
= 520000 * $0.034
On payment date, the amount paid
= 520000 * $0.036
The amount paid is higher than the liability recorded before hence the difference is recognized as a loss on foreign exchange.
= 520000 * $0.036 - 520000 * $0.034
= $1040
Answer:
C
Explanation:
D / V = 1000 / 4000
Dividing 1000 by 4000 gives 0.25 = 25%
E / V = 3000 / 4000
Dividing 3000 by 4000 gives 0.75 = 75%
Answer: Option C
Explanation: Perfect competition refers to a market structure under which there are large number of buyers and sellers each operating at a small level.
In such a market structure the supply curve is a horizontal line that depicts that whatever the quantity is the price will remain the same, that is, at the equilibrium level.
This happens due to the fact that there are large of number of participants present and no individual have the power to affect the price.
Thus, the correct option is C.
Answer:
Sell interest-earning assets in order to obtain non-interest-bearing money
Explanation:
The liquidity preference theory states that investors prefer cash or highly liquid assets to long term assets that carry high risk.
When investors obtain long term assets the charge higher interest rates or premium in order to mitigate associated risk.
In this scenario when the supply of money is higher than demand, there is abundance of non interest bearing money that is highly liquid.
According to the liquidity preference theory investors will sell their interest bearing assets and go for assets with high liquidity (non Interest bearing money)
