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Ilya [14]
3 years ago
9

D. When incorporating, it is important to consider whether or not the company will conduct business internationally. 1. Summariz

e the impact of foreign exchange rates on the company’s financial statements. What risks do foreign exchange rates pose? Provide academically supported example(s) in your response
Business
1 answer:
steposvetlana [31]3 years ago
4 0

Answer with Explanation:

Foreign exchange rates can have significant impact on the company's financial statements because the spot rate at that date can be affect the value of the company's assets. It is very common in consolidated financial statement of a multinational companies.

The impact on the financial statements can be as under:

  • The fluctuation in currency value can under or over statement of assets, liabilities and Income & Expenses.
  • The fluctuation makes the analysis of the financial statements meaningless. The performance of the company in a consolidated statement will be in a state that would not be better understood or time consuming by experts to develop understanding of what the financial statement is saying. It would be difficult for an ordinary person to understand the performance of the business.
  • It can also also manipulate the value of the assets of the company because increase in devaluation of the currency means increase in inflation and vice versa.
  • The value of the company acquired can be affected significantly which means that the investment (value of whole company) can turn into significant losses which means it can result reporting losses of in a consolidated financial statement. This would also result in decrease in the stock value of the group as a whole.
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John is a low-level employee at an accounting firm. In his duty as an employee at the firm, John forges documents and signatures
ANEK [815]

Answer:

the three of them could be held personally liable:

  • I. John
  • II. John's manager
  • III. The CEO, who in this specific case we assume could have prevented the crime.

Explanation:

John committed forgery and possibly fraud by forging clients' signatures on documents held by the company. His boss ordered him to do so, so he is also responsible for John's actions. John can even try to put all the blame on his boss alleging that he was forced to forge the signatures. The CEO of the firm is also responsible because the forged documents had to serve someone's illegal purposes, and the CEO probably was the one that needed them or knew about what was going on and didn't do anything to stop it.

6 0
3 years ago
A convenience store owner is contemplating putting a large neon sign over his store. It would cost​ $50,000, but is expected to
Radda [10]

Answer:  <em>No, since the value of the cash flows over the first two years are less than the initial investment</em>

Explanation:

value of cash flows for the first two years = $48,000 (24,000x2)

Initial Investment = $50000

Because the additional $48,000 profit during the two year payback is not grater than the $50,000 purchase, they should not put the large neon sign up.

4 0
3 years ago
Pratte Boat Wash's cost formula for its cleaning equipment and supplies is $2,600 per month plus $51 per boat. For the month of
Lyrx [107]

Answer:

The Correct answer is $85 U.

Explanation:

Spending change is the contrast among the real and expected (planned) measure of a cost  

Genuine Spending on cleaning equipment and supplies in April = $3,450  

Planned Spending in cleaning equipment and supplies in April = $2600 + $51 × 15 boat = $ 3365  

Difference among Budgeted and Actual is $ 85 for example abundance spending than planned subsequently this difference is Unfavorable  for organization.

7 0
3 years ago
When gathering information, which of the following tasks might you need to preform?
katovenus [111]

AnswerStudy objects, conduct tests, research written materials, and ask questions

Explanation: here is your anserw to you quetions please rate me the ,ost brainlest  ow let me know if you got it right

8 0
3 years ago
You purchased GARP stock one year ago at a price of $67.67 per share. Today, you sold your stock and earned a total return of 18
Svetlanka [38]

Answer:

14.48%

Explanation:

The capital gains yield on the investment is increase in share price divided by the initial price paid to acquire the share a year ago.

The total return formula can be used to figure the price the stock was when sold as below:

total return =P1-Po+D/Po

P1 is the current price which is unknown

Po is the initial price of $67.67

total return is 18.79%

D is the dividend of $2.92

0.1879=P1-67.67+2.92/67.67

0.1879*67.67=P1-64.75

12.72=P1-64.75

P1=12.72+64.75

P1=77.47

Capital gains yield=(77.47 -67.67)/67.67=14.48%

7 0
3 years ago
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