Answer:
$5030.45
Explanation:
Triangular arbitrage results when there is a discrepancy in the exchange rate of 3 foreign currencies. Traders can make a lot of money if they see this opportunity correctly.
Given:
Dollars to Yen >>> $0.007 = ¥ 1
Dollars to CAD >>> $0.821 = 1 CD
CAD to Yen >>> 1 CD = ¥ 118
Now, you have $5000,
Converting to CAD:
5000/0.821 = 6090.13 CAD
Converting to Yen:
6090.13 CAD * 118 = ¥ 718635.81
Converting back to USD:
¥ 718635.81 * 0.007 = $5030.45
So, you end up with $5030.45 from this triangular arbitrage opportunity.
Revenue is only recorded on an accrual basis when money is received.
The method of accounting transactions for recording revenue when earned and expenses when spent is known as the accrual basis. The accrual basis mandates the use of provisions for sales returns, bad debts, and inventory obsolescence that are made before the occurrence of such events.
Accounting entries in the books of a company or business are referred to as accrual and accounts payable. Earned income and incurred expenses that have not yet been received or paid are known as accruals. Short-term debts that represent goods or services a business has received but hasn't yet paid for are known as accounts payable.
Learn more about accrual here
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Answer:
$12,000
Explanation:
Data provided
Borrowed amount = $40,000
Rate of interest = 5%
Fixed cost = $10,000
Variable cost = $25,000
Price per dozen = $2.00
The computation of total fixed costs is shown below:-
Return on investment= $40,000 × 5%
= $2,000
Total fixed costs = Fixed cost + return on investment
= $10,000 + $2,000
= $12,000
Explanation:
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Answer: Pharaohs journal $
Date
December 31, 2017
StaffBonusexpensesDr384,900
Accruede liability Cr384,900
Narration. Staff bonus due as at date.
February 15,2018
Accrued liability Dr 384, 900
Bank Cr. 384,900
Narration. Payment of staff bonus due
Explanation:
In line with the acrual concept of recognising expenses at the period they are due for payment. The staff bonus will be recognized as an expense to the income statement in 2017 and accrued as liability in the balance sheet if it's not paid.
The payment in 2018 will be a debit to the liability account and credit to the cash or bank account.