All categories

4 years ago

What financial reporting issues would arise as a result of making a foreign direct investment?

Business

1 answer:

Lerok [7]4 years ago

4 0

Answer: Converting foreign GAAP to the parent company GAAP; Translating currency.

Explanation:

A foreign direct investment is simply an investment that is made by a particular individual or firm in a particular nation even though the interests of the business are being located in another nation.

The financial reporting issues would arise as a result of making a foreign direct investment are the conversion of foreign GAAP to the parent company GAAP and the translation of currency.

You might be interested in

Creswell Corporation's fixed monthly expenses are $30,000 and its contribution margin ratio is 63%. Assuming that the fixed mont

nasty-shy [4]

Answer:

Net income= $27,960

Explanation:

Giving the following information:

Fixed costs= $30,000

contribution margin ratio= 0.63

Sales= $92,000

<u>First, we need to calculate the total contribution margin:</u>

Total contribution margin= 92,000*0.63= 57,960

<u>Now, the net income:</u>

Net income= 57,960 - 30,000

Net income= $27,960

5 0

4 years ago

Which of the following statements is NOT true regarding location decisions?

mariarad [96]

Answer:

B. Once management is committed to a specific location, many costs become relatively easy to reduce.

Explanation:

As a location decision is essential and a specific decision taken by the company it has to be focused on its decision and does not need to draw any conclusion as a location decision made in the past cannot be easily overcome or reduced depending on the choices of the firm or the location availability of the resources.

The location adds a cost to the company and is evaluated on the basis of the internal policy and thus is costly to undo. A location often serves as a point of maximum profit or the operations performed by a firm like the effects form the land cost, labor costs, energy costs, and transport costs, etc.

3 0

4 years ago

Demand for plumbing services for the last 3 years, from furthest past to most recent, was $44 million, $42 million, and $38 mill

Yanka [14]

Downward sloping because demand is declining

7 0

3 years ago

If you are an equity investor how do you make money from your investment?

denis23 [38]

Answer:

(C) Selling the investment for more than you paid for it.

Explanation:

The investor can create profits by buying shares at a lowered price and trading them at a greater exchange price. Bonus Problem: If a business is functioning particularly well, it might give available shares to its stockholders. Investors should have a clear knowledge of their maneuvering before buying stock so they understand the best technique to estimate any possible stock purchase.

4 0

3 years ago

At December 31, 2020, the following information was available from Pharoah Co.'s accounting records:

Liono4ka [1.6K]

Answer:

Pharoah's inventory at December 31, 2020 was $81,120. The right answer is a.

Explanation:

In order to calculate Pharoah's inventory at December 31, 2020 we would have to calculate the following formula:

Ending inventory at cost=Ending inventory at retail*Cost to Retail ratio

Cost to Retail ratio=$772,000 ÷ $1,184,000

Cost to Retail ratio= 0.65

Ending inventory at retail=($1,184,000 – $9,200 – $1,050,000)

Ending inventory at retail=$124,800

Therefore, Ending inventory at cost=$124,800× 0.65

Ending inventory at cost=$81,120

Pharoah's inventory at December 31, 2020 was $81,120

3 0

4 years ago