Answer: Market Efficiency
Explanation:
It is important that the Government as a regulator should not get involved in acts that would protect individual institutions from failure because that would defeat the whole purpose of a competitive industry.
If a government is known to directly involve itself in the protection of institutions from failure, efficiency in institutions may become low because of the lack of fear of failure as companies believe that should they run into bad times, they will simply be bailed out by the government so there is no need for them to maintain a competitive edge.
This can lead to a situation where we have companies performing sub optimally in an economy which can only act to reduce the Economic growth of a country.
Government institutions usually have such backing and in a lot of countries are prone to failure. Look at the Bamangwato Concessions Limited (BCL) mine in Botswana for instance that kept failing and refusing to improve it's efficiency because they could always run back to the government for a bailout. Their position eventually became so untenable that bankruptcy was the only option.
Answer:
B) the current exchange rate on the date of preparation of the financial statement.
Explanation:
All foreign asset accounts have to be translated at current rates. This means that they have to use the exchange rate that was valid during the time the financial statements were being prepared.
This same rule applies to anyone that has gone on vacations to a foreign country. When you come back you exchange whatever foreign money you have left to US dollars and this will be done using that day's valid exchange rate.
Answer:
C
Explanation:
If Long-term debt to total assets ratio = 0.30 and total liability = $45000 and total assets =
$120000. The Long-term debt equalj
Answer:
Total total equivalent units for conversion are 17,000
Explanation:
Materials:
cost: 35,200
complete units 16,000
WIP 4,000 100%
BI 0
Total Units 20,000
Material Cost per unit : 1.76
<u>Conversion</u>
cost 37,400
<u>Equivalent Units</u>
The complete units count entirely. The WIP units work as much as process they receive. Finally there are no beginning inventory units
complete units 16,000
WIP 4,000 x 1/4 = 1,000
BI 0
Total equivalent units 17,000
37,400/17,000 = 2.2
Conversion cost per unit: 2.22
Equivalent unit cost: 1.76 + 2.22 = 3.98