Answer:
True
Explanation:
Under multinational projects, a multi national company sets up a business unit in another country, known as subsidiaries, to benefit from factors such as cheap labor, better market for products, availability of resources, etc.
The subsidiaries set up at different nations, report their profitability to the parent as well as repatriate a portion of their profits earned.
Feasibility or viability of a multinational project depends upon the repatriated profits that the parent eventually receives from the subsidiary.
Subsidiary cash flows do not define the viability since the parent company's and host nation's currencies differ. Thus, a US parent company which has a subsidiary in Vietnam, would be only bothered of the US Dollars repatriated by such a subsidiary.
Answer:
Options 2, 4, 6, 7, 8, and 9 are capital expenditure.
Options 1, 3, and 10 are the immediate expenses.
Option 5 is Neither.
Explanation:
Capital expenditure is those expenditures that are incurred to maintain the fixed assets. Thus Options 2, 4, 6, 7, 8, and 9 are capital expenditure. While the expenses that are compulsory and immediate in nature are called the immediate expenses. This means if the equipment requires repairing then it will fall in the category of immediate expense because without repairing it won't work. Therefore, a property tax of $75000, repair of the main plant, and maintenance for equipment are immediate expenses.
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Answer:
$4,200
Explanation:
Skypress Company
$5,600 × 3/4
=$5,600×0.75
= $4,200
Therefore the revenue reported from this transaction during 2013 would be $4,200
