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3 years ago

Purchasing power parity does not hold in the short to medium run because:____.

Business

1 answer:

maria [59]3 years ago

8 0

Answer:

some goods aren't internationally traded

Explanation:

Purchasing power parity is most popularly known as the PPP. It may be defined as the measure of the prices of the various countries which makes use of the price of some specific goods in order to compare the absolute purchasing capability or power for the countries' currencies.

It is used to measure and compare prices at different locations.

The purchasing power does not hold good in the short to the medium run as different countries produces different goods and as such all the goods are not internally traded all over the locations or countries.

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Bramble Family Importers sold goods to Tung Decorators for $39,000 on November 1, 2020, accepting Tung’s $39,000, 6-month, 6% no

Aliun [14]

Answer:

note receivable 39,000 debit

sales revenue 39,000 credit

--Nov 1st to record sale of goods to Tung Decorators --

interest receivalbe 390 debit

interest revenue 390 credit

--Dec 31th adjusitng entry for accrued interest --

cash 40,170 debit

note receivable 39,000 credit

interest receivable 390 credit

interest revenue 780 credit

--May 1st collection of the note--

Explanation:

First, we record the sales revenue and we enter the promissory note at his nominal. Interest will be accrued as the time past.

interest for the period Nov 1st - Dec 31th

prncipal x rate x time

we must always have rate adn time in the same metric so we express the mont has fraction of year:

39,000 x 6% x 2/12 = 390

collection of the note

cash procceds: principal + interest

39,000 x (1 + 6% x 6/12) = 40,170

we write off both receivables, the note and the interest,

and we recognize interest revenue for the difference

40,170 - 39,000 - 390 = 780

6 0

3 years ago

The per-unit standards for direct labor are 2 direct labor hours at $15 per hour. If in producing 2900 units, the actual direct

pashok25 [27]

Answer:

$5400 Favorable

Explanation:

Standard 2 hour at $15 per hour

Standard hours 2 hour per unit * 2900 units = 5800 hours

Total Standard cost = 5800 hours * $15 per hour = $87,000

Actual hours = 5100

Actual cost = $81600 / 5100 hours = $16 per hour

Variance = Standard - Actual

Labor hour Variance Favorable = 700 hours (5800 hours - 5100 hours)

Total Labor variance = $5400 ($87,000 - $81,600)

4 0

3 years ago

That afternoon, you meet with the owners privately to discuss the data you received. Which of the factors analyzed do you think

Kazeer [188]

Answer:

From the information from the remaining part of the question. The factor that would affect the success or failure of Caffè Gustoso is the Cultural factor.

Explanation:

Caffè Gustoso an Italian word meaning "Tasty coffee". This tells us that the firm is in the food and beverage industry.

Each of the countries mentioned are found in different continents having diverse cultures.

Key to their success is to know the culture of these countries as regards to coffee.

4 0

3 years ago

Jim is in the market for a car that will last for the next 10 years and has saved up some money for the purpose of a car. what’s

nordsb [41]

Answer:

Utilizing his saving as a down payment and buying the car using an auto loan.

Explanation:

5 0

4 years ago

An agent who buys and sells securities from inventory is called a: 1) broker. 2) commission broker. 3) floor broker.4) floor tra

stepladder [879]

Answer:

5) Dealer

Explanation:

1) Broker: A person who arranges a transaction between two parties

2) Commission Broker: The person who executes buy and sell orders on behalf of customers.

3) Floor Broker: The person who executes buy and sell orders on the floor of an exchange and charges his fee for it.

4) Floor Trader: The person who buys and sells for his personal account and owns a trading license.

5) Dealer: An agent who buys and sells securities from inventory.

4 0

3 years ago