Answer:
Current rate method
Explanation:
Translation is defined as the conversion of financial statement of a foreign subsidiary from the foreign currency to local currency.
This is done to reduce the effect of foreign exchange risk.
If a foreign subsidiary is exposed to foreign exchange risk the best translation method is the current rate method.
Current rate method uses the current exchange rate in translation.
Translation is used when the local currency is the functional currency of the company.
Answer: $230,000
Explanation:
In our case,
Undiscounted future cash inflows from the sale of the product = $ 600,000 and
Carrying value of the asset = $ 720,000.
We can come to a conclusion that the benefit we get from the sale of the asset is less that carrying value.
Hence, the asset is said to be impaired.
Therefore,
Impairment Loss = Carrying value - Fair value of the asset
= 720,000 - 490,000
= $230,000.
Answer:
$900
Explanation:
As $1,000 is deposited in the account by Mr. Y in the Bank A. But the further requirement of the reserve is 0.10. So, it will amounts to:
Amount of reserve requirement = Amount deposited × Requirement of reserve
where
Amount deposited is $1,000
Requirement of reserve is 0.10
= $1,000 × 0.10
= $100
Therefore, the initial amount of the money that created by excess reserve is:
= Amount deposited - Amount of reserve requirement
= $1,000 - $100
= $900
Comparative advertising is one form of product advertising.
Answer:
The correct answer is option A and option C.
Explanation:
Chips and salsa are complementary goods. An increase in the price of salsa will cause its demand to decline. This will cause an upward movement to the left on the demand curve for salsa.
At the same price level, the demand curve for chips will shift to the left because of the increase in the price of salsa. This is because increase in price of salsa will lead to a decline in the demand for chips even though its price remains the same.
