Communities resist programs to educate the public about hurricane hazards because they don't believe they have a hurricane problem; it hasn't happened as long as they can remember.
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Answer:
The size of the futures position should be 64.2% of the size of the company’s exposure in a three-month hedge.
Explanation:
As given,
The standard deviation of quarterly changes in the prices of a commodity = $0.65
The standard deviation of quarterly changes in a futures price on the commodity = $0.81
The coefficient of correlation between the two changes = 0.8
Now,
Optimal hedge ratio = 0.8×
= 0.8×0.80 = 0.6419
⇒Optimal hedge = 0.6419 ≈ 0.642 = 64.2 %
⇒The size of the futures position should be 64.2% of the size of the company’s exposure in a three-month hedge.
Answer:
The amount of uncollectible accounts expense that will be recognized on the Year 1 income statement is $1,620.
Explanation:
To arrive at the amount of uncollectible accounts expense that will be recognized on the Year 1 income statement, we simply need to calculate 3% of the company's sales on account balance, as follows:
3% of ($190,000 - $136,000) = $1,620
So, $1,620 would be the bad debt expense that will be recorded in Year 1 income statement, since there is no opening balance of sales on account and allowance for doubtful accounts.
Also, note that the collection on account during the year would reduce the sales on account balance, as shown above.
Answer: (A) Electronic data exchange
Explanation:
The electronic data exchange system is the type of software which is used for transferring the data from one system to another computer system.
The EDI system is used for exchanging various types of business document in an organization.
By using the electronic data exchange method we can easily and fastly transfer the file and document to the destination computer system without any human intervention.
This type of software is used in various types of business for exchange documents between the customers and suppliers.
Therefore, Option (A) is correct.
