All categories

2 years ago

An example of transaction exposure is when:__________.

Business

1 answer:

makkiz [27]2 years ago

8 0

Answer: companies have obligations for the purchase of goods at previously agreed prices.

Explanation:

Transaction exposure is the uncertainty

that is typically faced by businesses that are involved in international trade. It is the risk that there will be a fluctuation in the currency exchange rates after a firm might have already taken part in a financial obligation.

Therefore, an example of transaction exposure from the question will be when companies have obligations for the purchase of goods at previously agreed prices.

You might be interested in

Which of these inventory changes would be accounted for prospectively? Select one: a. FIFO to LIFO, but not LIFO to FIFO b. LIFO

Basile [38]

Answer: a. FIFO to LIFO, but not LIFO to FIFO

Explanation:

Well the inventory changes which would likely be accounted for is the FIFO ( first in first out system ) to LIFO ( last in first out system ). But not the LIFO ( last in first out ) to FIFO ( first in first out ). This system are mostly used in sales where for FIFO the first goods to arrive leaves first and for LIFO the opposite of FIFO

7 0

2 years ago

Which of the following has the biggest impact on consumer goods during war times?

amm1812

<h3><u>Full question:</u></h3>

Which of the following has the biggest impact on consumer goods during war times?

a. Consumers deferring purchases in hopes of a better deal

b. High interest rates

c. Low inflation

d. High inflation

<u>Answer:</u>

The biggest impact on consumer goods during war times was High inflation

<u>Explanation:</u>

Inflation raised during or as an immediate outcome of these struggles of stock markets endured dull subsequent termination of the war. The government demanded to execute price and wage restrictions in acknowledgment of inflation which had risen due to the extra inducement that was generated by government spending.

Distinctly, both using and financing continued building subsequent the war; nevertheless, the growth was beneath the course rate before the war. Prices, influenced by the rate of inflation, commonly affect consumer spending on goods significantly.

6 0

2 years ago

Tyree's basketball coach makes his players practice free throws after a difficult practice and under the threat of having the wh

Zinaida [17]

<span>Tyree's coach is likely trying to instill teammate dependability in his players by making them run laps if their teammates do not get at least 75% of their free throwns in.</span>

3 0

3 years ago

1. A U.S. company anticipates that it will sell merchandise for €100,000 at the end of August and receive payment for it at the

mamaluj [8]

Answer:

C. $200 net loss

Explanation:

The net loss or gain is calculated on hedging to determine whether the hedge has been beneficial for the company or not. Hedging is a process to transfer exchange rate movement risk. This is usually suitable for the companies who have receipts or payments in foreign currencies.

The hedging gain loss can be calculated as:

Forward rate at the time of contract - spot rate today

$1.21 - 1.232 = 0.0232

6 0

2 years ago

In the month of June, a department had 20,000 units in beginning work in process that were 70% complete. During June, 90,000 uni

fgiga [73]

Answer:

100,000 units

Explanation:

The computation of the transferred out units of the process is shown below:

= Transferred units × percentage of completion + ending work in process inventory units × percentage of completion

= 90,000 units × 100% + 10,000 units × 100%

= 90,000 units + 10,000 units

= 100,000 units

All other information which is given is not considered. Hence, ignored it

3 0

3 years ago