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Nonamiya [84]
3 years ago
13

An example of transaction exposure is when:__________.

Business
1 answer:
makkiz [27]3 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.

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Deltra was willing to purchase a dozen cookies for $60 that Deirdre was willing to sell for anything more than $32. If they agre
likoan [24]

Answer:

$28

Explanation:

The computation of the total value that would be created in the exchange is shown below;

The Deltra surplus is

= Purchase value - agreed price

= $60 - $36

= $24

And, the Deirdre surplus is

= Agreed price - willing to sell

= $36 - $32

= $4

Now the total value created is

= Deltra surplus + Deirdre surplus

= $24 + $4

= $28

5 0
3 years ago
Suppose a report on CNN says that there is an impending recession coming in the United States. As a result, Bert's family, as we
lisov135 [29]

Answer:

b) The economy is actually harmed as there is a sharp decease in consumer spending.

Explanation:

As a result of the news of a recession people will react by planning for a future that may be bleek financially.

Savings will increase, the greater the fear of recession the more people will save to cushion the impact of recession. There is the possibility of job slow down in economic activities and resultant job losses so extra cash that would have normally been spent will be saved for the rainy day

3 0
3 years ago
Match the following:
alexira [117]

Answer:

The match is as follow

1. Posting   ⇒   E. Copying data from the journal to the ledger

2. Expense  ⇒ A. The cost of operating a business; a decrease in stockholders' equity

3. Debit      ⇒  K. Left side of an account

4. Trial Balance   ⇒  L. The book of accounts and their balances

5. Equity    ⇒  F. Assets - Liabilities

6. Net Income  ⇒  G. Revenues - Expenses

7. Receivable  ⇒ B. Always an asset

8. Chart of Accounts  ⇒ H. Lists all accounts with their balances

9. Payable   ⇒ I. Always a liability

10. Journal    ⇒  D. Lists a company's accounts and account numbers (no account balances in this item)

11. Normal Balance  ⇒ C. Side of an account where increases are recorded

12. Ledger   ⇒    J. Record of transactions

4 0
3 years ago
Mcmurtry Corporation sells a product for $110 per unit. The product's current sales are 12,200 units and its break-even sales ar
denis23 [38]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Mcmurtry Corporation sells a product for $110 per unit. The product's current sales are 12,200 units and its break-even sales are 10,614 units.

<u>The margin of safety is the number of units or amount of dollars that provide genuine profit to the company. It is the "margin" that gives room to try new strategies</u>.

It is calculated using the following formula:

Margin of safety ratio= (current sales level - break-even point)/current sales level

Margin of safety ratio=  (12,200 - 10,614) / 12,200

Margin of safety ratio= 0.13=13%

5 0
3 years ago
If abc company earned $280,000 in net income and paid cash dividends of $40,000, what are abc's earnings per share if it has 80,
Nadya [2.5K]
<span>To find earnings per share, simply divide the company's net income by the number of shares that are outstanding. In this case, the values are $280,000/80,000. This gives a value of $3.50 for the earnings per share outstanding. Dividends, in this case, are not necessary for the calculation.</span>
3 0
3 years ago
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