3 won I think if not sorry
Answer:
e. $638
Explanation:
payment to be made as per forward contract (IN $)
= 39960/ 1.682
= $23757.43
now the actual rate after 90 days is 1.638
payment at 1.638 rate = 39960/ 1.638
= $24395.6
loss by hedging = $24395.6 - $23757.43
= $638.17
Therefore, The U.S. firm have saved or lost $638 in U.S. dollars by hedging its exchange rate exposure.
Answer:
1. The Orange Lily Law Firm
Accrual Basis and Cash Basis:
For the two months, Orange Lily Law Firm would have entered $3,480 instead of recording only $1,160 ($3,480/6) x 2 in the Advertising Expense Account.
2. Safe Home
Accrual Basis and Cash Basis:
If Safe Home had used the Accrual Basis, it would recorded $6,540 ($3,710 + 2,830) as Service Revenue for the year, instead of recording only $3,710.
Explanation:
There are two methods of recording business transactions in accounting. There is the cash basis. This involves making records only in the period that cash flow (either inflow or outflow) takes place.
The accrual basis records business transactions as they occur in a period whether cash was received or paid or not. The concentration of the accrual basis is to match the economic event to the period and not when actual cash event takes place..
Assume company x deposits $100,000 in cash in a commercial bank. If no excess reserves exist at the time this deposit is made and the reserve ratio is 20 percent, the bank can increase loans by a maximum of $500,000.
Reserve ratio = 20% = 20/100 = 0.25
Initial Money supply = (1/Reserve ratio)*New Deposit = (100,000/0.25) = $ 400,000
Reserve ratio = Rerserve / Deposit
=> Reserves = 0.25*100,000 = 25,000
Max Increase in Money Supply = Initial Money Supply + Reserves/ Reserve Ratio
= $ 400,000 + 100,000
= $ 500,000.
The term commercial bank refers to financial institutions that accept deposits, provide checking account services, issue various loans, and provide basic financial products such as certificates of deposit (CDs) and savings accounts to individuals and small businesses. refers to
Learn more about the commercial banks at
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