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1 year ago

The foreign exchange market is a market for converting the currency of one country into that of another country.

Business

1 answer:

3241004551 [841]1 year ago

4 0

Answer:

a. True

Explanation:

The foreign exchange market is a market for converting the currency of one country into that of another country.

For example, the conversion of dollars of the United States of America can be converted into naira (Nigeria) at the foreign exchange market.

Efficient market school is the market school which argues that forward exchange rates do the best possible job for forecasting future spot exchange rates, so investing in exchange rate forecasting services would be a waste of time because it is impossible to have a consistent alpha generation on a risk adjusted excess returns basis as market prices are only affected by new informations.

The efficient market school also known as the efficient market hypothesis (EMH) is a hypothesis that states that asset (share) prices reflect all information and it is very much impossible to consistently beat the market.

Also, forward exchange rates are exchange rates controlling foreign exchange transactions at a specific future date or time.

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Julius, a collector and seller of Egyptian relics, hired Brutus to act as his sales agent. Julius later discovered that Brutus,

nekit [7.7K]

Answer: Julius is bound on this contract because Brutus had apparent authority

Explanation:

Based on the scenario and the information given, Julius is bound on this contract because Brutus had apparent authority.

Apparent authority simply refers to a scenario whereby means a principal in this case Julius is bound by the action of the agent that is, Brutus even though Brutus had no authority. Here, Anthony believed that Brutus had an authority to act not knowing that he had been fired.

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2 years ago

The Adams Corporation, a merchandising firm, has budgeted its activity for November according to the following information:

Mars2501 [29]

Answer:

im not sure

Explanation:

7 0

2 years ago

The Dlabay Company had a quick ratio of 1.4, a current ratio of 2.75, an inventory turnover of 6 times, total current assets of

Gnesinka [82]

Answer:

Annual sale is $2,282,728.80 and ACP is 44.87 days

Explanation:

Since the annual sales are not given, so first we have to compute the current liabilities amount, then inventory amount, after that, only the sales amount could be found

So, the current liabilities = Current assets ÷ current ratio

= $775,000 ÷ 2.75

= $281,818

Now the quick ratio = (Current assets - inventory) ÷ current liabilities

1.4 times = ($775,000 - inventory) ÷ $281,818

$394545.20 = $775,000 - inventory

So, inventory = $380,454.80

Now, the inventory turnover equals to

Inventory turnover ratio = (Turnover ÷ average inventory)

6 times = Annual sales ÷ 380454.80

So, annual sales = $2,282,728.80

The computation of the ACP is shown below:

= (Account receivable ÷ credit sales) × 360 days

Since account receivables is not given so first, we have to calculate it which equals to

= Current assets - cash - inventory

= $775000 - $110,000 - $380,454.80

= $284545.20

Now put these values to the above formula

So, the value would equal to

= ( $284545.20 ÷ $2,282,728.80) × 360 days

= 44.87 days

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2 years ago

Prepare journal entries to record the issuance of the bonds and the retirement of bonds. (Show computations and round to the n..

Vikentia [17]

Answer:

issuance entry:

cash 2,850,000 debit

discount on BP 150,000 debit

bonds payable 3,000,000 credit

--to record issuance--

bonds payable 600,000 debit

loss on redemption 30,000 debit

interest expense 56,250 debit

cash 662,250 credit

discount on BP 24,000 credit

--to record redemption ---

Explanation:

proceeds at issuance : $3,000,000 x 95/100 = 2,850,000

the difference will be the discount.

Now, when the bonds are retired we have to check the weight:

3,000,000 --> 120,000

600,000 --> 120,000/3,000,000 x 600,000 = 24,000

<u><em>cash outlay</em></u> 600,000 x 101/100 = 606,000

loss redemption

we pay 606,000

for bonds which are worth: 600,000 - 24,000 = 576,000

The loss is the difference.

then, we calcualte the accrued interest:

principal x rate x time

3,000,000 x 7.5% x 3/12 = 56,250‬

this will be an interest expense

as well as an additional cash outlay

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3 years ago

How do i solve capital for a month on a balance sheet

stepan [7]

Capital for a month on a balance sheet:

The net working capital formula is calculated by subtracting the current liabilities from the current assets. Here is what the basic equation looks like. Typical current assets that are included in the net working capital calculation are cash, accounts receivable, inventory, and short-term investments.

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2 years ago