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scoundrel [369]
3 years ago
13

You are an American, working for a US hospital. The hospital sells services to a French hospital. Given a depreciation of the Eu

ro, your French subsidiary (the one that receives the revenues from the French Hospital) received a lesser income last year, although a clause in your contract stipulates adjustment payment in US dollars. Therefore, your subsidiary has a balance sheet loss, although your consolidated global result is positive. This type of foreign exchange risk is known as:
Business
1 answer:
sdas [7]3 years ago
6 0

Answer:

translation exposure

Explanation:

Translation exposure is also known as translation risk. In this type of risk, the value of a company's assets, equities, income, or liabilities change due to changes in the exchange rate,

French subsidiary received a lesser income last year, although payment will be adjusted in US dollars as per the contract.

Due to this, the subsidiary has a balance sheet loss, although the consolidated global result is positive.

This type of foreign exchange risk is known as translation exposure.

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The Racquet Store (RS) sells franchise agreements in which it charges an up-front fee of $50,000 for assistance in setting up a
andre [41]

Answer: A- Revenue under the installment sales method, as soon as it has assisted Steffi in setting up the store.

Explanation: The installment sales method is a method of accounting accepted under the US Gaap. It is a method were revenue is recorded in instalments and the cost of sales and gross profit recognised upon the collection of the installment revenue.

It is a method of accounting used mainly by construction companies whose revenue are not received once but in installments.

7 0
3 years ago
Assume you are saving $1,000 by depositing into a bank CD account with one year until maturity. The interest rate on your deposi
mina [271]

The amount of money that I would have in the bank account at the end of one year is $1,100.

The real interest rate I would expect to earn on the deposit is 6%.

If I am saving for a gaming computer, at the end of next year I would have enough money.

<h3>What is the value of the money by next year?</h3>

The formula that can be used to determine the money in my bank account next year is:

FV = P (1 + r)^n

Where:

FV = Future value

P = Present value

R = interest rate

N = number of years

1000 x (1.1)^1 = $1,100

<h3>What is the real interest rate?</h3>

The real interest rate is the nominal interest rate less inflation rate.

The real interest rate = 10% - 4% = 6%

To learn more about future value, please check: brainly.com/question/18760477

7 0
2 years ago
Jetson Spacecraft Corp. shows the following information on its 2015 income statement: sales = $316,547; costs = $219,406; other
o-na [289]

Answer:

Net working capital addition was for 8,108 dollars

Explanation:

To solve for NWC we start form the accounting equation and then, we expand it to get the NWC expression:

Assets = Liabilies + Equity

we expend the formula

current assets + fixed assets = current liabliies + non-currnet liab + stock + RE

NWC = net working capital

being: current assets - current liabilities

(current assets - current liabilities) =  non-currnet liab + stock + RE - fixed assets

NWC = -3,283 + 5,629 + RE - 24,154

We need to solve fotr the change in Retained Earnings:

which is net income - dividends:

sales                                316,547

costs                              (219,406)

other expenses                 (8,481)

depreciation expense    (18,633)

interest expense             (14,216)

taxes                                 (15,217)

                 net income      40,594

                dividends         (10,678)

          change in RE           29,916

NWC = -3,283 + 5,629 + 29,916 - 24,154

NWC = 8,108

8 0
3 years ago
The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhead and $1.30 for fixed factory ov
lesantik [10]

Answer:

$26,000 adverse variance

Explanation:

Fixed Overheads Volume Variance = Budgeted Overheads at Actual Output - Budgeted Fixed Overheads

                                                             = $1.30 x 60,000 hours - $1.30 x 80,000

                                                             = $78,000 - $104,000

                                                             = $26,000 adverse variance

The fixed factory overhead volume variance is $26,000 adverse variance

7 0
3 years ago
Historically, a factory has been able to produce a very specialized nano-technology component with 35% reliability, i.e., 35% of
pochemuha

Answer:

Yes

Explanation:

From the given output

The  Probability of getting 13 or more passed

when the  reliability = 0.35. can be calculated as follows

=0.0258+0.0109+0.0039+.0012+0.0004 = 0.0422   ≈  4.2%

Since the probability is less than the  5% level we will therefore reject the Null hypothesis  

answer : YES

5 0
3 years ago
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