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koban [17]
3 years ago
13

Categorize each transaction according to the U.S. account to which it belongs and the direction the money flows.AccountDirection

of flowAn Australian company buys steel from a U.S. firm.The Federal Reserve buys $2 billion worth of euros.Profits are earned by a U.S. based mining company operatingin Mexico.An English company purchases a U.S.confectionary manufacturer.Financial accountPayment from foreignersFactor incomePayment to foreignersPayment from foreignersCurrent accountFinancial accountCurrent account
Business
1 answer:
Lana71 [14]3 years ago
5 0

Answer:

Financial account transactions are those that involve capital goods or purchases.

The Current account is for goods and services.

1. Australian company buys steel from a U.S. firm. -<u> Current Account. Payment from foreigners.</u>

This is a purchase of a good being steel and the payment was made by foreigners to a U.S. firm.

2. The Federal Reserve buys $2 billion worth of euros. <u>Financial Account. Payment to foreigners.</u>

This is a capital flow involving the purchase of another currency. It was done by paying foreigners.

3. Profits are earned by a U.S. based mining company operating in Mexico. <u>Current Account. Payment from foreigners.</u>

These profits were made from business operations offering goods and services so is for the current account. The profits was made from Mexico so is a Payment from foreigners.

4. An English company purchases a U.S. confectionery manufacturer. <u>Financial Account. Payment from Foreigners. </u>

The English company invested in owing the confectionery manufacturer so this is a capital transaction. It involved a foreign company paying a U.S. company so is a payment from foreigners.

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Which of the following strategies is the easiest to​ implement? A. Global strategy B. International strategy C. Multidomestic st
Alja [10]

Answer:

The correct answer is letter "A": Global strategy.

Explanation:

There are three (3) main approaches used to engage in international businesses: <em>global strategy, multidomestic strategy, </em>and <em>transnational strategy</em>. With the global strategy firms offer the same product or service with few to no modifications everywhere they have a presence. With the multidomestic strategy companies shape their products according to the region of operations. Finally, the transnational strategy is a midterm between the global and multidomestic strategy.

Thus, <em>the easiest approach to implement is the global strategy since it demands a few changes in the company's operations regardless of the region where they conduct businesses.</em>

4 0
4 years ago
The stock of Flop Industries is trading at "$37" You feel the stock price will decline, so you short 400 shares at an initial ma
Allushta [10]

Answer:

$45.54

Explanation:

Given that,

Stock of Flop Industries is trading at $37

Initial margin = 60 percent (short 400 shares sale)

Maintenance margin = 30 percent

Amount received from short sale:

= shares short × Stock trading price

= 400 × $37

= $14,800

Initial deposit:

=  Amount received from short sale × Initial margin

= $14,800 × 60%

= $8,880

Account value = Amount received from short sale + Initial deposit

                        =  $14,800 + $8,880

                        = $23,680

Margin call price:

= Account value ÷ [short sale + (short shares sale × maintenance margin)]

= $23,680 ÷ [400 + (400 × 30%)]

= $23,680 ÷ (400 + 120)

= $23,680 ÷ 520

= $45.54

6 0
3 years ago
A stock is
arsen [322]

Answer:

A share of ownership in a company.

Explanation:

A stock represents ownership of a company. The total value of an organization is subdivided into small units called stock, shares, or equity.  Each stock or share is a small portion of the organization. Holders or owners of the shares are the owners of the company. They are known as shareholders or stockholders.

Shareholders acquire their shares or equity by either being the founders of the business or by purchasing them. When a business is being formed, the founders contribute capital, which converts to shares. The business may opt to sell more shares to the public through IPO when they need to raise additional capital.

7 0
4 years ago
Prior to closing, total revenues were $12,840,000 and total expenses were $9,975,000.
AnnZ [28]

Answer:

Owner's capital account is increased by $2,235,000.

Explanation:

At the end of the period the closing entries are made to close the temporary accounts of Revenue and expenses and transfer the balance to retained earning or owners capital account.

Net income for the year = Total revenue  - Total Expenses

Net income for the year = $12,840,000 - 9,975,000

Net income for the year = $2,865,000

Changes in owner's capital account during the period = net income / loss - drawings during the period

Changes in owner's capital account during the period = $2,865,000 - $630,000

Changes in owner's capital account during the period = $2,235,000

8 0
3 years ago
"Nancy works for a nonprofit organization in which she reports directly to the area director, who reports directly to the distri
guajiro [1.7K]

Answer:

flat divisional structure

Explanation:

Generally organizations can be structured in three different ways:

  1. divisional: the organization is divided into divisions, and each division has its own complete set of resources, e.g. marketing, finance, production, IT, etc.
  2. functional: the organization is divided into departments, and the people that work at each department share similar sets of skills, e.g. finance department, marketing department, production department, etc.  
  3. matrix: combinations of divisional and functional structures

In this case, Nancy reports to an area director ⇒ district director ⇒ CEO

Since the number of layers between Nancy and the CEO (top management) are rather few, we can assume that this is a flat organization, with very few hierarchical levels. On the other hand, tall organizations have many levels, filled with supervisors and middle managers.

6 0
3 years ago
Read 2 more answers
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