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slega [8]
3 years ago
10

What type of exposure relates to exposure to potential financial loss as a result of trading in another currency?

Business
1 answer:
andrezito [222]3 years ago
3 0

Answer:

The correct answer is foreign exchange risk.

Explanation:

Currency risk is the positive or negative difference that arises from changes in the exchange rate over time. A company that carries out operations in another currency is exposed to exchange rate movements, therefore it must seek to compensate them strategically.

Whenever a company carries out a transaction in foreign currency, whether it is for the importation of inputs or products, or the export of goods, with a waiting period between collection and payment, there is a risk of loss or gain that may affect to your finances and your profitability.

As the exchange market is volatile, a company that does not anticipate changes in the exchange rate may run the risk of incurring losses that affect its financial planning and cash flows.

Therefore, it is advisable to be prudent in your purchases of raw materials or finished products and when contracting financing in other denominations.

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A department transferred 7,000 units to the finished goods storeroom during a month. There was no beginning work in process inve
ivann1987 [24]

Answer:

It will be used using the Equivalent unit cost

$2.27

Explanation:

Period Cost / Equivalent Unit = Equivalent Unit Cost

16,800/7,400 = 2.27027 Equivalent Unit Cost

8 0
3 years ago
Tara wants to put a small portion of every paycheck into a low-risk investment. which would be her best option?
nydimaria [60]

Tara's best option to put a small portion of every paycheck into a low-risk investment is investing in an S&P 500 index fund.

<h3>What is a paycheck?</h3>

A paycheck can be defined as a financial document that is issued by an employer to an employee as payment for the work done over a period of time.

<h3>What is risk tolerance?</h3>

In Insurance, risk tolerance can be defined as the willingness of an individual or organization to take a risk in business transactions and investments, in order to get a potentially positive reward.

Generally, the high risk that is associated with investments such as stocks, high-yield bonds, etc., is often perceived by investors to be worth the higher reward these investment brings.

In this scenario, we can reasonably infer that Tara's best option to put a small portion of every paycheck into a low-risk investment is investing in an S&P 500 index fund.

Read more on low-risk investments here: brainly.com/question/26164819

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6 0
1 year ago
What is cookie consent ?
emmainna [20.7K]

Answer:

A cookie consent banner is the cookie warning that pops up on websites when a user first visits to the site. It's the website banner that <em>declares</em> the cookies and tracking present on a website and gives the users a choice of prior consent before their data is handled.

6 0
3 years ago
Read 2 more answers
Four years ago, Ship Express purchased a mailing machine at a cost of $218,000. This equipment is currently valued at $97,400 on
deff fn [24]

Answer:

equity = 45,800

Explanation:

working capital:  current assets - current liaiblities = 41,300

net book value of long term assets: 97,400

long term debt 102,800

we will work with the accounting formula to solve for equity:

assets = liaibltiies + equity

we divide assets and liabilities in current and non-current:

current assets + long term assets = current liabilities + long-term debt + equity

we rearrenge the formula in order to sovle for equity:

(currnet asets - current liabilities) + long term assets - long-term debt  = equity

41,300 + 97,400 - 92,900 = equity

equity = 45,800

3 0
3 years ago
Read 2 more answers
A project budget report is showing our project as spending $35,000 against a budgeted amount of $40,000. Which of the following
romanna [79]

From the above information, it is true that the company is running a budget deficit.

<h3>What is budgeting?</h3>

Budgeting is the process of planning for an allocating resources efficiently and effectively.

A budget deficit is when the expended amount is above the budgeted figure.

Learn more about budgeting:
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7 0
2 years ago
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