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3 years ago

Match the given terms to the appropriate statement relating to the various functions of money. Each term is used only once.

Business

1 answer:

chubhunter [2.5K]3 years ago

7 0

Answer:

A,)Unit of Account

B)Standard of Deferred Payment:

C)Store of Value

D)Medium of Exchange:

Explanation:

1. Unit of Account ( this explains that good can be measured for a value)

2. Standard of Deferred Payment( it explains that one can make purchase now and pay later)

3. Medium of Exchange( overall purchasing power is attributed to money)

4. Store of Value( Money is used to complete the transaction between the buyer and seller.

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What item should you look for when adjusting your check register?

Varvara68 [4.7K]

Answer:

The payment and the Deposit

Explanation:

The check register is adjusted using the item: payment and the Deposit and from the point of view of the bank statement the item is the withdrawal and deposit.

8 0

3 years ago

Read 2 more answers

Board Company has a foreign subsidiary that began operations at the start of 2017 with assets of 155,000 kites (the local curren

vovikov84 [41]

Answer:

a. The Board would report translation adjustment of -$3,138.

b. See the journal entries and explanation below.

c. Net translation adjustment is -$1,138.

Explanation:

a. Assume that the kite is this subsidiary's functional currency. What translation adjustment would Board report for the year 2017?

Note: See the attached file for the calculation of translation adjustment.

The board would report a negative (debit) translation adjustment of $3,138. That is,

Translation adjustment = -$3,138

b. Assume that on October 1,2017, Board entered into a forward exchange contract to hedge the net investment in this subsidiary. On that date, Board agreed to sell 200,000 kites in three months at a forward exchange rate of $0.76/1 kite. Prepare the journal entries required by this forward contract.

Board Company

Journal Entries

Date Account titles and Explanation Debit ($) Credit ($)

01 Oct 17 (No entry)

12 Dec 17 Forward contract 2,000

Translation adjustment (positive) (w.1) 2,000

(To record forward contract change in the value to adjust translation adjustment.)

12 Dec 17 Foreign currency (kites) (w.2) 152,000

Cash 152,000

(To record 200,000 kites purchased at the spot rate of $0.76)

12 Dec 17 Cash 154,000

Foreign Currency (kites) 152,000

Forward contract 2,000

(To record 200,000 kites delivered, $154,000 received, and close the forward contract account.)

Workings:

w.1: Translation adjustment = Number of kites agreed to sell in three months * (Agreed exchange rate on October 1, 2017 per kite - Exchange rate on December 1, 2017) = 200,000 * (0.76 - 0.75) = $2,000

w.2: Foreign Currency (kites) = Number of kites agreed to sell in three months * Agreed exchange rate on October 1, 2017 per kite = 200,000 * 0.76 = $152,000

c. Compute the net translation adjustment for Board to report in Accumulated Other Comprehensive Income for the year 2017 under this second set of circumstances.

This can be calculated as follows:

Net translation adjustment = Negative translation adjustment in part a + Positive translation adjustment in part b (i.e. w.1) = -$3,138 + 2,000 = -$1,138

Therefore, net translation adjustment is -$1,138.

Download xlsx

8 0

3 years ago

The switch to the use of ethanol in gasoline is driven primarily by its relatively lower price. Assuming a competitive market, w

Nitella [24]

Answer:

Price falls, output rises

Explanation:

We know that the ethanol is used as an input in the production of gasoline. So, if the price of ethanol is lower then this will reduce the cost of production of gasoline. If the cost of production of ethanol is lower then this will give an incentive to the producers of gasoline to produce more and supply more.

This will shift the supply curve of gasoline rightwards, as a result there is a fall in the equilibrium price level and increase in the equilibrium quantity of gasoline.

5 0

3 years ago

Categorizing U.S. taxes

Sergeeva-Olga [200]

Answer:

Explanation:

A regressive tax is a tax system where the same tax rate is applied uniformly. As a result, those earning less income are taxed higher than those earning more income.

Sales tax is an example of a regressive tax.

If sales tax is 5%. Worker A earns $100 and worker B earns $1000. Both buy a good worth $50 before tax. the sales tax is worth $2.5.

The tax comprises $2,5 / 100 = 2.5% of worker A's income and $2,5 / $1000 = 0.025% of Worker B's income.

It can be seen that worker A who earns less income is taxed higher

5 0

3 years ago

Oriole Company uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $380

ohaa [14]

Answer:

Adjusting journal entry:

Dr Bad debt expense 19,000

Cr Allowance for doubtful accounts 19,000

Explanation:

accounts receivable balance = $380,000

total credit sales = $1,520,000

6% of accounts receivable will be bad debt = $380,000 x 6% = $22,800

credit balance allowance for doubtful accounts account = $3,800, and it must increase to $22,800 ⇒ $22,800 - $3,800 = $19,000

Adjusting journal entry:

Dr Bad debt expense 19,000

Cr Allowance for doubtful accounts 19,000

Allowance for doubtful accounts is a contra asset account with a credit balance that reduces the value of accounts receivable.

4 0

3 years ago