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dmitriy555 [2]
3 years ago
8

A U.S. company purchased inventory on account at a cost of 1,000 foreign currency units (FCU) from a non‐U.S. company on Novembe

r 15, to be paid on December 15. The FCU is valued at $0.85 on November 15 and at $0.90 on December 15. The journal entry to record payment on December 15 should include which of the following?A. Debit inventory and credit cash for $850.B. Debit accounts payable and credit exchange gains and losses for $50.C. Debit accounts payable and credit cash for $850.D. Debit exchange gains and losses and credit accounts payable for $50.
Business
1 answer:
Alecsey [184]3 years ago
4 0

Answer:

D. Debit exchange gains and losses and credit accounts payable for $50.

Explanation:

0.85 FCU = 1 dollar

1,000 x 0.85 = 850

0.90 FCU = 1 dollar

1,000 x .90 = 900

exchange 850 -900 = -50 = loss 50

<em>november 15</em>

inventory 850

 account payable 850

<em>december 15</em>

exchange gans and losses 50 debit

account payable 50 credit

<em>december 15</em>

account payable 900 debit

     cash 900 credit

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If he wanted the cash award of each of the five prizes to be $45,000 and his estate could earn 7% per year, how much would he ne
Stels [109]

Answer:

The answer is $3,214,285.71

Explanation:

Price of each award is $45,000

And there are 5

Therefore, we have 5 x $45,000

=$225,000.

So, $225,000 is the future value.

Rate of return(r) in 7% and it is being assumed that it is forever.

So, so how much will be needed to fund his prizes(present value)?:

PV = FV/r

= $225,000/0.07

=$3,214,285.71

5 0
3 years ago
You and nine of your wealthy friends decide to purchase a local minor league baseball team. The purchase price is $15 million, 6
worty [1.4K]

Answer:

Limited liability company

Explanation:

A limited liability company is a company where the liabilities of partners is limited to the amount invested in the company. A limited liability company has features of both a partnership and a sole proprietorship

The partnership is made up of a general partner and the limited partners. the general partner is involved in the daily running of the business. The limited partners are not involved in the daily running of the business. They just contribute capital.

In this question, the person involved in the running of the business is the general partner while the other 9 friends are the limited partners.

4 0
3 years ago
Which is a commonly used resource for international ethical guidelines for human subjects research?
Andrei [34K]

Answer:

CIOMS International Ethical Guidelines for Biomedical Research Involving Human Subjects

Explanation:

International Ethical  Guidelines for  Health-related Research  Involving Humans  are prepared by the Council for International Organizations of Medical Sciences (CIOMS)  in collaboration with the  World Health Organization (WHO) . The ethical justification for undertaking health-related research involving humans is its  scientific and social value: the prospect of generating the knowledge and the means   necessary to protect and promote people’s health. Patients, health professionals, researchers,  policy-makers, public health officials, pharmaceutical companies and others rely on the  results of research for activities and decisions that impact individual and public health,  welfare, and the use of limited resources. Therefore, researchers, sponsors, research ethics  committees, and health authorities, must ensure that proposed studies are scientifically  sound, build on an adequate prior knowledge base, and are likely to generate valuable  information.  

4 0
3 years ago
A firm's diversification strategy is most likely to add value if:________. a. There exist economies of scope between diversified
Katyanochek1 [597]

Answer:

Option A. There exist economies of scope between diversified business units

Explanation:

The reason is that diversification is lowering the industry risk of the business the company is in by investing in several other industries. This helps us to lower the risk and have a steady returns in the subsequent years. This means uncertainty related to cash flows is lowered and this has also increased the chances of cash surplus for subsequent years.

Furthermore, if the investments made in diversified business units possesses economies of scope, which means that we are in related diversification because we are manufacturing different but similar goods which are substitutes to each other from large to some extent. This brings economies of scope and would lower the total operating cost of company. Hence the <u>Option A</u> which says that economies of scope does add value to the company is the right option.

Option B is not preferable option as the option of investing in different businesses is choosen in the option A.

Option C is again the same as Option B and the difference is that it uses the word several unrelated businesses instead of comprehensive business portfolio which is the same thing. Hence <u>Option C</u> is also not preferable option here.

<u>Option D</u> is incorrect because when we acquire an organization it is the move of increase in risk portfolio because acquisitions are mostly not a sound investments and not a part of diversification strategy as the company is putting all the eggs in the single basket.

4 0
3 years ago
The following data come from the financial records of Campbell Corporation for Year 3: Sales $ 840,000 Interest expense 5,000 In
kumpel [21]

Answer:

the times was interest earned in Year 3 is 11.2 times

Explanation:

The computation of the times interest earned ratio is given below:

The times interest earned ratio is

= (Net income+ Income tax expense+ Interest expense) ÷ Interest expense

= ($25,500 + $25,500 + $5,000) ÷ $5,000

= 11.2 times

Hence, the times was interest earned in Year 3 is 11.2 times

The same is to be relevant

7 0
3 years ago
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