Answer:
current floating exchange rate
Explanation:
Exchange rate is the rate at which one currency will be exchanged with another. For example, 1 United States Dollar is equivalent to 4.24 Poland Zloty as of March 2020.
There are two common types of exchange rates:
1. Floating exchange rate: This is set by the FOREX market, and is based on the current supply and demand of currencies. When demand for a currency is high, its value increases and vice versa.
2. Fixed exchange rate: A fixed or pegged exchange rate is whereby a government entirely determines the rate and value of the currency.
Generally, a floating exchange rate system is used in the global market. This does not mean countries allow their currencies to fluctuate endlessly. The central bank of a country and it's government does intervene and manipulate the currency to make it favorable for them during international trade but it is done in a more indirect manner as opposed to a fixed exchange rate system.
Answer:
Ace records the purchase:
Inventory 3,700 Accounts payable 3,700
Explanation:
Ace Bonding Company purchased merchandise inventory on account. The inventory costs $3,700.
Following the Accrual accounting - an accounting method that revenue or expenses are recorded when a transaction occurs rather than when payment is received or made. At that time of purchasing, the company has not sold the merchandise yet. The entry records the purchase:
Debit Inventory $3,700
Credit Accounts payable $3,700
Answer: Please see answers in explanation column
Explanation:
Accounts title and explanation Debit Credit
Sales returns and allowances $121,200
Sales refund payable $121,200
Calculation
Expected Sales returns and allowances = sales x expected percentage
= 2,020,000 x 6%= $121,200
Accounts title and explanation Debit Credit
Inventory returns estimated $72,600
Cost of goods sold $72,600
Calculation
expected Cost of goods sold = Cost of goods soldx expected percentage
= 1,210,000 x6%=$72,600
Answer: debit to Stock Investments for $55,080.
Explanation:
As this is an investment in another company, it will count as an asset which means that when it increases, the account will have to be debited. It will therefore be debited for $55,080 to show the investment.
Cash will decrease by the same amount which means that it will have to be credited because assets are credited when they decrease.
Dr Stock Investments $55,080
Cr Cash $55,080
