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TiliK225 [7]
3 years ago
6

Following a peso appreciation relative to the dollar, which of the following results is expected to occur?

Business
1 answer:
liubo4ka [24]3 years ago
7 0

Answer:

B

Explanation:

A currency appreciates when its value increases.

For example if $1 was exchanged for 50 pesos. After appreciation of the pesos, $1 would buy $25 pesos.

So more $2 would be needed to buy 50 peso after the appreciation when before the appreciation $1 was buying 50 pesos.

As a result Mexican goods would become more expensive to US consumers and the revenue earned by Mexican producers would increase

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Month-end & Year-end process helps to write-off bad debts.
Katyanochek1 [597]

Answer:

False

Explanation:

It is FALSE that Month-end and Year-end process helps to write-off bad debts.

This is because both month-end and year-end processes are processes specifically carried out to adjust all account balances to make and depict the actual financial activities of the firm. This assists the firm's management team to make a further decision, but not to just write-off bad debts.

Bad debt is written off only when a customer invoice is deemed to be uncollectible.

5 0
2 years ago
Using the percentage of net sales method, uncollectible accounts expense for the year is estimated to be $54,000. If the balance
PilotLPTM [1.2K]

Answer:

The correct answer is c) $72,000

Explanation:

(Using the percentage of net sales method)

  • Uncollectible accounts expense for the year is estimated to be $54,000

  • If the balance of the Allowance for Uncollectible Accounts is an $18,000 credit before adjustment.

$54,000 + $18,000= $72,000

The balance after adjustment is $72,000

6 0
3 years ago
​Moe's Pizza Shop sells a large pizza for​ $12.00. Unit variable expenses total​ $8.00. The breakeven sales in units is​ 7,000 a
Nookie1986 [14]

Answer:

Margin of safety= $12,000

Explanation:

Giving the following information:

Moe's Pizza Shop sells a large pizza for​ $12.00. Unit variable expenses total​ $8.00. The breakeven sales in units are​ 7,000 and budgeted sales in units are​ 8,000

To calculate the margin of safety in dollars, we need to use the following formula:

Margin of safety= (current sales level - break-even point)

Margin of safety= (8,000*12) - (7,000*12)= $12,000

3 0
3 years ago
Sweetpea Corporation sold a tiller that it used in its landscaping business. The tiller cost $5,000 and Sweetpea had taken $2,00
astraxan [27]

Answer:

Sweetpea have a gain of $1,000

Explanation:

When the depreciable property is sold, then the gain or loss will be computed to the extent on the difference among the selling price and the adjusted basis.

So, the adjusted basis will be

= Cost of the basis - Depreciation

= $5,000 - $2,000

= $3.000

Therefore,

Gain or Loss = Selling Price - Adjusted basis

                     = $4,000 - $3,000

                     = $1,000

Hence, it is a gain of $1,000.

6 0
3 years ago
Terry company had january 1 inventory of $100,000 when it adopted dollar-value lifo. during the year, purchases were $600,000 an
inna [77]

Answer:

Terry's Closing Inventory is $131,360.

Terry's Gross profit is $431,360.

We follow these steps to arrive at the answers:

<u>1. Calculate the base value of closing inventory (CI):</u>

CI_{base value} = \frac{CI*Index at base year}{current price index}

CI_{base value} = \frac{143360*100}{112} =  128,000

<u>2. Calculate additions to inventory at base price</u>

Additions to inventory = CI_{base value} - Beginning inventory

Additions to inventory = 128000 - 100000 = 28,000

<u>3. Calculate the value of additions to inventory at current prices</u>

Additions to inventory_{current Value} = Additions to inventory_{base Value} * \frac{current price index}{base price index}

Additions to inventory_{current Value} = 28,000 * \frac{112}{100} = 31,360

<u>4. Calculate the value of Closing inventory</u>

Closing inventory = Beginning Inventory + Additions to inventory_{current Value}

Closing inventory = 100,000 + 31,360 =  131,360

<u>5. Compute Cost of Goods Sold (COGS):</u>

COGS = Opening Inventory + Purchases - Closing Inventory

COGS = (100000 + 600000 - 131360) = 568640

<u>6. Compute Gross profit</u>

Gross profit = Sales - COGS

Gross profit = 1000000 - 568640 = 431360

5 0
3 years ago
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