1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
katovenus [111]
2 years ago
5

Frankfurter Company, a U.S. company, had a ruble receivable from exports to Russia and a euro payable resulting from imports fro

m Italy. Frankfurter recorded foreign exchange loss related to both its ruble receivable and euro payable. Did the foreign currencies increase or decrease in dollar value from the date of the transaction to the settlement date? Ruble Euro A) Increase Decrease B) Decrease Decrease C) Decrease Increase D) No change Decrease E) Increase Increase
Business
1 answer:
IgorC [24]2 years ago
4 0

Answer:

The correct option is C.

Explanation:

Foreign exchange gain or loss is the gain or loss made on transactions based on the movement in the exchange rates.

  • Ruble receivable from export to Russia: For Frankfurter Company to have recorded a foreign exchange loss, as at the time the transaction was consummated the exchange rate would have been higher compared to the rate of settlement. For example, if 1 ruble = $1.5 on April 1 (when the export was made), on settlement date, it moved to 1 ruble = $1.4, the company would suffer a loss of $0.1. You just need to multiply this $0.1 by the value of the exports.
  • Euro payable from imports from Italy: For the company to have suffered a foreign exchange loss, it means the exchange rate was not favorable at the time of settlement of the payment - means the exchange rate moved higher.
You might be interested in
Zinc, LP was formed on August 1, 20X9. When the partnership was formed, Al contributed $10,000 in cash and inventory with a FMV
elena55 [62]
C is the correct answer
7 0
3 years ago
Explain just in time(JIT) approach?
amm1812
<span> is an inventory </span>strategy<span> companies employ to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs.</span>
6 0
3 years ago
Why should your business use Performance Planner?
klasskru [66]

Answer:

The answer is C.It makes recommendations that are validated using machine learning.

Explanation:

A performance planner is a tool used by Google Ads to devise plans in relation to how a business spends on advertising and how changes on advertisement campaigns will affect key metrics and the general performance. It is mostly used as a forecasting tool, with the use of machine learning to show the possibilities or potential outcomes in Google Ads campaigns. This implies that all the conclusions arrived at, are determined by machine learning.

7 0
3 years ago
There are ___ different Bright Futures scholarships.
WARRIOR [948]

Bright futures funds three scholarships.

5 0
2 years ago
Read 2 more answers
Define cash flow..............................
Y_Kistochka [10]
The total amount of money being transferred into and out of a business
5 0
3 years ago
Read 2 more answers
Other questions:
  • How should silvio napoli deal with the challenges he is facing over transfer prices and limited technical cooperation from the e
    9·2 answers
  • Why do we got to pay for this stuff ?
    8·2 answers
  • Creighton Company reported the following on the company's income statement for the year. Interest expense $600,000 Income before
    5·1 answer
  • Let's say you just bought a new home and you did not get a home warranty and your builder-seller has tried to fix your leaking r
    9·1 answer
  • Suppose $20,000 of raw materials is withdrawn from the storeroom to be used In production. Of this amount $15,000 consists of di
    5·1 answer
  • lee company pays its employees on a graduated commission scale 6% on the first $40,000 sales 7% on sales from $40,001 to $80,000
    5·2 answers
  • 9) Given the following information, compute the total number of units for the period: Direct labor hours 12,000 Direct labor cos
    6·1 answer
  • Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $198,000 of raw materials on credit
    12·1 answer
  • Cedric Company recently traded in an older model computer for a new model. The old model's book value was $140,000 (original cos
    11·1 answer
  • In a closed economy with only lump-sum taxation, if the marginal propensity to consume is equal to 0. 75, a $70 billion increase
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!