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4 years ago

All of the following stockholders' equity accounts of a foreign subsidiary are translated at historical exchange rates except:?

Business

1 answer:

Citrus2011 [14]4 years ago

8 0

Answer:

a.retained earnings.

Explanation:

All of the below mentioned accounts are acquired at historical cost and cash benefits do not change for them, as because they are acquired on cost, that is there carrying value is cost and related to amount for which it was acquired, further retained earnings includes the balance of current earnings added, therefore as per rules retained earnings are not converted, on historical conversion rate, and will be converted using current conversion rates of currency.

Final Answer

a.retained earnings.

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Security dealers: are limited to trading non-listed stocks. buy and sell from their own inventory. operate exclusively in auctio

Naddik [55]

Answer:

The answer is B. buy and sell from their own inventory

Explanation:

A dealer is someone who buys and sells from its own account or inventory.

A dealer is a seller to an investor that wants to buy securities and he is also a buyer to an investor that wants to sell his securities.

A broker is different from a dealer in that it transacts(sells or buys securities) on behalf of his or her clients.

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3 years ago

A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as p

Naily [24]

According to the stats, administration would not be willing to beautify the campus as the cost of the beautification is higher than the money that students are collectively willing to pay.

As per the survey, there are 300 students. Each of them is willing to pay $11. so collectively the money that can be raised is $3300. Where as the amount for the beautification of the campus is $4400. There is a gap of $1100. That administration would definitely not willing to pay. So they will decline the campus beautification initiative.

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3 years ago

Read 2 more answers

Spanolia LLC is estimating its WACC. Its bonds have a 12 percent coupon, paid semiannually, a current maturity of 20 years, and

Sav [38]

Answer:

Spanolia LLC

The after-tax cost of debt is:

= 7.20%.

Explanation:

a) Data and Calculations:

Coupon interest rate of bonds = 12%

Maturity period = 20 years

Selling price = $1,000

Firm's marginal tax rate = 40%

After-tax cost of debt = Coupon interest rate * (1 - tax rate)

= 12% * (1 - 0.4)

= 12% * 0.6

= 7.20%

b) Spanolia's after-tax cost of debt is derived by multiplying the cost of debt by the after-tax rate. The after-tax cost of debt represents the interest that Spanolia LLC pays on the bonds less the income tax savings that it gains because interest expenses are tax-deductible.

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3 years ago

Sonic started as a sole proprietorship, then became a partnership, eventually grew to be a franchisor and later a public corpora

Lorico [155]

Answer:

The correct answer would be Access to more Capital.

Explanation:

A Public corporation or the public company is an entity what has many stock holder which include the general public as well. The liabilities of the company are separated from the stock holders. It is an entity whose shares are listed on the stock exchange to be traded by the people.

The main advantage of the Public Corporations is the access of more capital. As general public buy stocks or shares of the company, they are basically investing their money in the corporation, which increases the capital held by the company.

Public corporations are open for the general public.

8 0

3 years ago

Nike, Inc., with headquarters in Beaverton, Oregon, is one of the world's leading manufacturers of athletic shoes and sports app

JulijaS [17]

Answer:

Nike, Inc.

Transaction Analysis and Indication of the account, amount, and direction of the effect on the accounting equation:

a. Purchased additional buildings for $172 and equipment for $270; paid $432 in cash and signed a long-term note for the rest.

Analysis:

Accounts affected: Building, Equipment, Cash, and Long-term Note Payable

Assets (Building +$172,000,000, Equipment + $270,000,000, Cash -$432,000,000) = Liabilities (Long-term Note Payable + $10,000,000) + Equity

Check: Assets +$10,000,000 = Liabilities + $10,000,000 + Equity

b. Issued 100 shares of $2 par value common stock for $345 cash.

Analysis:

Accounts Affected: Common Stock, Additional Paid-in Capital (APIC), and Cash

Assets (Cash +$345,000,000) = Liabilities + Equity (Common Stock +$200,000,000 and APIC +$145,000,000)

Check: Assets +$345,000,000 = Liabilities + Equity +$345,000,000

c. Declared $145,000,000 in dividends to be paid in the following year.

Analysis:

Accounts affected: Dividends Payable and Dividends (Retained Earnings)

Assets = Liabilities (Dividends Payable + $145,000,000) + Equity (Retained Earnings - $145,000,000

Check: Assets = Liabilities -$145,000,000 + Equity - $145,000,000

d. Purchased additional short-term investments for $7,616,000,000 cash.

Analysis:

Accounts Affected: Short-term Investments and Cash

Assets(Short-term Investments + $7,616,000,000, Cash -$7,616,000,000) = Liabilities + Equity

Check: Assets = Liabilities + Equity

e. Several Nike investors sold their own stock to other investors on the stock exchange for $84

No impact on the accounting equation.

f. Sold $4,313 in short-term investments for $4,313 in cash.

Analysis:

Accounts Affected: Short-term Investments and Cash

Assets(Short-term Investments - $4,313,000,000, Cash +$4,313,000,000) = Liabilities + Equity

Check: Assets = Liabilities + Equity

Explanation:

In Nike's financial records, the accounting equation is the basis for the double-entry system of accounting. It shows that the two sides of the financial position of Nike, Inc. are always in balance with the assets = liabilities + equity with the occurrence of each business transaction. This is because, two or more accounts are always involved and affect equally the two sides if proper accounting has been carried out.

5 0

3 years ago