How will the appreciation and depreciation of foreign currencies
affect the financial statements of a multinational company? (Assume
financial statements are presented in local currency)
Answers
A multinational company refers to a company with operations in multiple countries. If there is depreciation in the foreign currency, cash flows from foreign operations will decrease when converted into the local currency, thereby decreasing the company's cash flow.
A multinational company refers to a company with operations in multiple countries. These companies are exposed to the risk of currency fluctuations, which can impact their financial statements. Here's how appreciation and depreciation of foreign currencies affect the financial statements of a multinational company presented in the local currency:
1. Balance Sheet: On the balance sheet of a multinational company, the value of assets and liabilities held in foreign currencies are converted to the local currency at the exchange rate on the reporting date. If there is appreciation in the foreign currency, the value of the assets held in that currency will increase. This, in turn, will increase the total assets of the company.
Conversely, if there is depreciation in the foreign currency, the value of the assets held in that currency will decrease, and this will decrease the total assets of the company. Similarly, if there is appreciation in the foreign currency, the value of the liabilities will increase, and if there is depreciation in the foreign currency, the value of the liabilities will decrease.
2. Income Statement: On the income statement, revenues and expenses incurred in foreign currencies are converted into the local currency at the exchange rate at the time of transaction. If there is appreciation in the foreign currency, revenues earned in that currency will increase when converted into the local currency, thereby increasing the company's revenue. Conversely, if there is depreciation in the foreign currency, revenues earned in that currency will decrease when converted into the local currency, thereby decreasing the company's revenue.
Similarly, if there is appreciation in the foreign currency, expenses incurred in that currency will increase when converted into the local currency, thereby decreasing the company's profit. If there is depreciation in the foreign currency, expenses incurred in that currency will decrease when converted into the local currency, thereby increasing the company's profit.
3. Cash Flow Statement: On the cash flow statement, the company's cash flows from foreign operations are converted into the local currency at the exchange rate at the time of transaction. If there is appreciation in the foreign currency, cash flows from foreign operations will increase when converted into the local currency, thereby increasing the company's cash flow. If there is depreciation in the foreign currency, cash flows from foreign operations will decrease when converted into the local currency, thereby decreasing the company's cash flow.
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Related Questions
What levels of risk does investing in the stock generally carry
medium
medium, high,
low, high
or low?
Answers
Low, high levels of risk does investing in the stock generally carry. Over the long term, stocks have the highest potential for growth for investors. Investors who have chosen to hold onto stocks for an extended length of time—say let's 15 years.
Typically been rewarded with robust, profitable returns. Utilize your associated banking account to open a risk and trading account. Access that trading account. Choose the shares you want to purchase or sell. Make sure you have the necessary investing funds in your account to purchase the shares stocks. taking dividends in— Many stocks distribute dividends, which are based on the company's earnings per share.
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________ provide(s) most or all of the services needed to mount a campaign, including research, creation of ad copy and art, media selection, and production of the final messages.
Answers
A full service agency provides most or all of the services needed to mount a campaign, including research, creation of ad copy and art, media selection, and production of the final messages.
Given that the provider provides most or all of the services needed to mount a campaign, including research, creation of ad copy and art, media selection, and production of the final messages.
We are required to fill the blank with the name of the appropriate service provider.
The name of the appropriate provider is full service agency.
A full service marketing agency is basically one that can handle all of your marketing, advertising, and promotional needs across digital platforms. With a staff of experts in various disciplines, a full service marketing agency offers us comprehensive strategies and efficient solutions as an integrated part of your team.
Hence a full service agency provides most or all of the services needed to mount a campaign, including research, creation of ad copy and art, media selection, and production of the final messages.
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What is the purpose of a design brief?
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A manager makes decisions very quickly and requires little information for making the decisions. Which of the following is a likely reason for this?
A) The manager has low self-esteem.
B) The manager has an external locus of control.
C) The manager is high in emotional stability.
D) The manager is high in risk-taking.
Answers
The correct option from the given statement is D. The manager is high in risk-taking.
A manager who makes decisions very quickly and requires little information for making the decisions is someone who is high in risk-taking. This is because taking risks can be interpreted as being brave, bold and courageous in certain circumstances. The likelihood of taking risks is influenced by various factors including genetics, early experiences, environmental factors such as family and peers, and cognitive and emotional factors including personality traits. Risk-taking can have positive outcomes, such as increasing innovation, flexibility, and creativity in decision-making, and negative outcomes, such as increased costs, negative reputation, or negative health outcomes.The decision-making process involves several stages, which include identifying the problem, generating alternative solutions, evaluating the alternatives, choosing the best alternative, and implementing the decision. Different types of decision-making are intuitive, rational, creative, and analytical. Intuitive decision-making involves making decisions based on intuition or gut feelings without analyzing the situation or gathering information. Rational decision-making involves making decisions based on logical analysis of the situation. Creative decision-making involves generating new ideas or solutions to problems. Analytical decision-making involves analyzing and evaluating the pros and cons of each alternative before making a decision.
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How is a credit union different from a bank?
O Acredit union offers services to companies instead of individuals.
A credit union only offers credit, it does not store money.
Acredit union is usually larger than a bank.
O A credit union is owned by its customers.
Answers
Answer:
a credit union is owned by its costumers (D)
Explanation:
i took the assignment!!
On January 2, The Public Legal Clinic issued Check 2108 for $370 to establish a petty cash fund. Indicate how this transaction would be recorded in a cash payments journal.
Answers
To create the petty cash fund, make the following journal entry: debit Petty cash fund account ($430), credit cash account ($430).
What is petty cash fund?A petty cash fund's main objective is to give business units enough money to pay for small expenses. The purpose is to make it easier for staff workers and visitors to get reimbursed for little expenses like taxi rides, postage, office supplies, and other things that often don't cost more than $25.00.
The data can also come from of the petty cash fund. Add up all of the expenses that are mentioned on each petty cash vouchers in the petty cash fund. This sum should be deducted from the calculated cash withdrawal amount. The outcome ought to be 0. There is an excess of cash in the fund if there is a residual balance.
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molen inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $4.00 per share. if the required return on this preferred stock is 6.5%, then at what price should the stock sell?
Answers
The price at which the stock should sell is $61.54.
Using this formula
Stock selling price=Preferred stock annual dividend/Preferred stock required return
Where:
Preferred stock annual dividend=$4.00 per share
Preferred stock required return=6.5% or 0.065
Let plug in the formula
Stock selling price=$4.00/0.065
Stock selling price=$61.538
Stock selling price=$61.54 (Approximately)
Inconclusion the price at which the stock should sell is $61.54.
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Answer:
$61.54.
Hope this helps! good luck :)
Why do new suppliers crowd into a market in which prices are rising?
Answers
Answer: They do this because if their products are scarce, they can raise the price high and get consumers to outbid one another.
Explanation: Usually, the producers do this tactic and they will produce more in response to higher prices. Their goal is to make more money for a good or service. I hope this helps!
Give five example of economic events in a bakeshop business
Answers
sale of goods, procurement of materials, machinery, and plant. Since each of these transactions has a monetary equivalent, five example of economic events in a bakeshop business.
What are some other names for economic events?A transaction is the term used in accounting to describe an economic event. A transaction that is recorded in a company's financial records is referred to as an accounting event. A transaction in accounting is something like noting the depreciation of an asset or paying dividends.
What big event in economics is that?Thus, the Industrial Revolution stands for the most significant economic event in history, the transition between two very distinct economic systems.
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Lauren could tell something was not right. She has always thought that sales representatives were always pleasant to the customers. The sales rep who sold a well-known line of tools to the hardware store where she worked was anything but pleasant to her manager. The rep was insisting that his tools should be more prominently displayed and a better assortment would mean more sales. The manager had other plans and told him so. To say the conversation was unpleasant would be an understatement. What Lauren was observing was an example of:
Answers
Answer: channel conflict
Explanation:
Based on the information given, Lauren was observing a channel conflict. A channel conflict occurs when there's a conflict or dispute between the channel partners such as the wholesalers, distributors or retailers.
In this case, the activity of one of them affects the sales or revenue of the other channel partner and the product as a whole.
High tea, a retail store, claims to sell a pack of 20 tea bags at a discounted rate of $20 from an advertised original price of $40. The original price was verified by regulators to be $25. The pricing strategy applied by high tea is an example of.
Answers
High tea, a retail store, claims to sell a pack of 20 tea bags at a discounted rate of $20 from an advertised original price of $40. The original price was verified by regulators to be $25. The pricing strategy applied by high tea is an example of deceptive pricing
Trading strategies referred to as "deceptive pricing" are employed to deceive prospective clients and customers into thinking they are paying less for items over the course of a season. Using words like "original," "former," or "regular" in price quotes are examples of this practice. Another example of this is bait-and-switch pricing, which involves charging clients in a way that purposefully misleads them.
Predatory pricing is the practice of artificially lowering prices to drive out rivals. Predatory pricing violates antitrust laws because it makes markets more susceptible to monopolies.
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Now that Amazon does collect sales tax in most states, what other loopholes has Amazon found to evade other taxes?
(In depth response)
Answers
Another area in which Amazon has found another tax loophole in order to evade taxes is:
They make use of foreign based companies to receive payments from customers in another country.What is a Tax Loophole?This refers to the legal clauses which the rich people and corporations exploit in order to evade paying tax or paying as much as other people.
One tax loophole which is being used by Amazon to evade tax is the use of foreign based companies to receive payments from customers in another country and bypass HMRC.
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Which of the following is a difference between Fiedler’s contingency theory of leadership and the path-goal theory of leadership? Select one: a. The Fiedler theory states that a leader can adopt the four leader styles of directing, coaching, supporting, and entrusting, whereas the path-goal theory measures leadership style with the least preferred coworker scale. b. The Fiedler theory discusses leader style, followers and situation, and the rewards to meet followers' needs, whereas the path-goal theory discusses leadership style and group task performance. c. The Fiedler theory enables leaders to diagnose both leadership style and organizational situation, whereas the path-goal theory focuses on the characteristics of followers as the most important element of the situation. d. The Fiedler theory made the assumption that new leaders could take over as situations change, whereas in the path-goal theory, leaders change their behaviors to match the situation.
Answers
Answer:
d. The Fiedler theory made the assumption that new leaders could take over as situations change, whereas in the path-goal theory, leaders change their behaviours to match the situation.
Explanation:
Fiedler's theory of leadership is based on the assumption that the leaders can be different and their effectiveness can be measured as when the the situation changes. Accordingly he prefers new management to a new situation, rather than the old one.
Whereas the path goal theory of leadership is based on the assumption and study that allows the managers to change in their behaviours as and when their situation demands. This provides for better working environment and encouragement for employees.
A US based company is attempting to merge with a French National conglomerate. With IFRS and GAAP being so different, what would be some of the challenges the two sides may face with the merger from an accounting standpoint?
Answers
The merger between a US-based company and a French National conglomerate can pose several challenges from an accounting standpoint due to the differences between International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP). Some of the challenges they may face include:
Accounting Principles: IFRS and GAAP have different underlying principles and concepts. IFRS is principles-based, emphasizing substance over form, while GAAP is rules-based, providing specific guidelines for various transactions. The differences in accounting principles can lead to variations in the recognition, measurement, and presentation of financial information.
Financial Statement Presentation: IFRS and GAAP have different requirements for financial statement presentation. The formats and classifications of items on the balance sheet, income statement, and cash flow statement may vary between the two sets of standards. This can make the comparison and consolidation of financial statements challenging.
Revenue Recognition: IFRS and GAAP have differing guidance on revenue recognition, particularly in areas such as the timing of revenue recognition, multiple-element arrangements, and percentage-of-completion method for long-term contracts. Aligning the revenue recognition policies of the merging entities can be a complex task.
Valuation of Assets and Liabilities: IFRS and GAAP may have different rules for the valuation of assets and liabilities, such as inventory, property, plant, and equipment, intangible assets, and financial instruments. Differences in valuation methodologies can impact the reported values of assets and liabilities, which can have implications for financial ratios, financial performance, and tax implications.
Business Combinations and Goodwill: IFRS and GAAP have different requirements for accounting for business combinations and the subsequent treatment of goodwill. For example, IFRS allows for the option of measuring goodwill at cost or using the impairment model, while GAAP follows a more strict impairment-only model. This can result in differences in the recognition and measurement of goodwill and the related impact on financial statements.
Disclosures: IFRS and GAAP have varying disclosure requirements, with differences in the level of detail and specific disclosures mandated for certain transactions and events. Harmonizing the disclosure requirements can be a complex task to ensure compliance with both sets of standards.
These are just a few examples of the challenges that may arise during the merger process from an accounting standpoint. It is crucial for the merging entities to have a thorough understanding of the differences between IFRS and GAAP and work closely with accounting professionals and advisors to address these challenges effectively and ensure accurate financial reporting and compliance with relevant regulations.
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an increase in the expected inflation rate will a. shift the short-run phillips curve downward and to the left. b. not shift the short-run phillips curve unless the unemployment rate changes. c. shift the short-run phillips curve upward and to the right. d. tend to increase production unless the actual inflation rate also increases. e. cause the unemployment rate associated with each inflation rate to decrease.
Answers
When there is an increase in the expected inflation rate, this will c. shift the short-run phillips curve upward and to the right.
What is the short-run phillips curve?The short-run Phillips curve shows how unemployment and inflation trade off in the opposite direction. The Phillips curve shows how inflation and unemployment rates are related.
For a specific predicted rate of inflation, the (short-run) Phillips Curve is drawn. The (short-run) Phillips Curve swings upward as predicted inflation rises. Inflation moves downward when predicted inflation declines.
Since lower inflation rates and higher unemployment are statistically connected with one another, the short-run Phillips curve has a negative slope.
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A small retail center that is usually located along a major road and consists of small businesses is known as a:
Answers
A small retail center that is usually located along a major road and consists of small businesses is known as strip center.
What is a strip center?A strip mall or strip center serves as a small retail shop or store that are arranged in a row, with a sidewalk in front.
This arrangement are typically developed as a unit and have large parking lots in front.
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Richard has recently finished college and is about to prepare for his exam to become a certified public accountant. He wants to talk to other accountants to learn how best to prepare for this exam. Which professional organization would be most helpful for him to join?
Answers
Answer:
The accountant federation
If Sheridan Company issues 7500 shares of $10 par value common stock for $375000, the account Paid-in Capital in Excess of Par Value will be credited for $75000. Common Stock will be credited for $75000. Cash will be debited for $300000. Paid-in Capital in Excess of Par Value will be credited for $375000.
Answers
Answer:
Common Stock will be credited for $75000
Explanation:
The journal entry to record the issuance of the common stock is shown below:
Cash Dr $375,000
To Common stock (7,500 shares × $10) $75,000
To Additional paid in excess of par value - common stock $300,000
(Being the issuance of the common stock is recorded)
For recording this we debited the cash as it increased the assets and credited the common stock and additional capital as it increased the equity
An unsecured loan...
typically has lower interest rates than a secured loan
is less difficult to qualify for than a secured loan
is connected to collateral, which can be taken by the lender if the loan is not paid
is not connected to collateral and, therefore, a higher risk for lenders
Answers
Answer:
is not connected to collateral and, therefore, a higher risk for lenders
Explanation:
Unsecured loans are the loans issued without any securities attached to them. The lender relies on the borrower's creditworthiness as the basis for granting the loan. Unsecured loans are mostly available to salaried workers whose pay is processed by the lending institutions.
Unsecured loans pose a higher risk to the lender because they are not backed by any collateral. For this reason, they attract a higher interest rate than secured loans.
Answer:
D
Explanation:
took the test
How can migrating to an enterprise platform solution help a business improve employee productivity?
by allowing all employees to access and share the same stored data faster
by increasing the number of employees in a business function
by adding complexity to each employee’s daily workload
by freeing up employee’s time to focus on core business activities
Answers
The migrating to an enterprise platform solution help a business improve employee productivity by allowing all employees to access and share the same stored data faster. Thus option (A) is correct.
What is data?The data is the processed form of raw information, more specifically it has facts, figures, measurements and amounts that is gathered for analysis or reference. So that a conclusion can be drawn in a proper way.
The data, especially facts or numbers, collected to be examined and considered and used to help decision-making, and the data can be stored in an electronic form in the database and used by a computer in the future.
Like a data governance system is effective if anyone can access the data when they need it.
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define finance education for class 8
Answers
When it comes to changing consumer behavior, marketers have a tough time
breaking the habits consumers tend to adopt .
True or False
Answers
This is for people who have a ps4.
do you still have to pay the PS plus even though you have Auto-renew off?
Answers
Answer:
not me
Explanation:
Answer:
no
Explanation:
Have a lovely day. <:
How did Ray conduct marketing-information management?
Answers
Which Interview Format would you be most comfortable with and Why? Click on "Start a New Thread" when you are ready to post.
Answers
There are different interview formats that a job candidate can come across during the hiring process. Video interviews also allow candidates to showcase their nonverbal communication skills, which can be seen as a huge advantage.
Some of them include the following:
1. In-Person Interview
2. Phone Interview
3. Video Interview
4. Group Interview
5. Behavioral Interview
6. Technical Interview Among all the interview formats, I would feel most comfortable with the video interview format and here is why: Video interviews are easy and convenient for the interviewer and the job candidate. It allows candidates to complete their interviews from the comfort of their homes.
They are an efficient and cost-effective way of conducting interviews without the need for travel. Video interviews allow for better engagement between candidates and interviewers, as both parties can see each other, which provides better communication than phone interviews.
Video interviews can be recorded, which makes it possible to review candidates' responses when making hiring decisions.
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the eisp component of provides informatino on the importance of infosec in the organization
Answers
The EISP component provides information on the importance of information security in the organization - True
Information on the significance of information security in the organisation is especially provided by the EISP (Enterprise Information Security Policy) component. The organization's general approach and structure for information security are described in the EISP, a policy document. Information security-related high-level declarations, objectives, duties, and recommendations are frequently included.
Even while the EISP may discuss the value of information security within the company, its main goal is to offer a thorough and organized framework for managing and protecting information assets. It assigns roles and duties, outlines procedures, and lays the basis for establishing and maintaining efficient information security practises across the organisation. It also defines the organization's security goals.
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Complete Question:
The EISP component provides information on the importance of information security in the organization - True/False
Help what’s the answer?
Answers
Answer:
The supply would fall
Explanation:
The restaurants wouldn't have as many workers at all times.
1. When the Code of Ethics was adopted:
a. there were sophisticated real estate license laws nationwide.
b. real estate license laws had failed to protect the industry.
c. there were no real estate licensing laws.
d. real estate brokers were licensed by the federal government.
2. The Code of Ethics was adopted to establish standards of conduct for the real estate industry.
a. True
b. False
Answers
The Code of Ethics was adopted when there were no real estate licensing laws. The correct option is option c. The statement is True. The Code of Ethics was adopted to establish standards of conduct for the real estate industry.
1. The Code of Ethics was adopted during a time when there were no real estate licensing laws. This means that the real estate industry lacked regulatory frameworks and guidelines to ensure ethical conduct among its practitioners.
The adoption of the Code of Ethics aimed to fill this gap and provide a set of standards for real estate professionals to follow.
2. The statement is true. The primary purpose of the Code of Ethics is to establish and promote standards of conduct within the real estate industry. It outlines ethical principles and guidelines that real estate professionals should adhere to when dealing with clients, colleagues, and the public.
By setting these standards, the Code of Ethics seeks to maintain the integrity and professionalism of the real estate profession and protect the interests of all parties involved in real estate transactions.
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when significant changes are made to the planned audit approach at any point during the audit, the final documentation should indicate
Answers
When significant changes are made to the planned audit approach at any point during the audit, the final documentation should indicate the reasons for the changes,
the nature and extent of the changes, and the impact of the changes on the audit procedures performed and the audit conclusions reached. This documentation should be included in the working papers and communicated to the relevant parties, such as the audit team, the audit committee, and management.
It is important to maintain a clear and complete record of the audit approach and any changes made to ensure that the audit conclusions are well-supported and can withstand scrutiny.
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within the relevant range of activity, ______ costs remain constant in total.
Answers
Within the relevant activity range, there is no change in the total amount of fixed costs.
What exactly is a Fixed Cost?Fixed costs are expenses that are usually based on time rather than how many products or services your business sells or produces. Examples of fixed costs include rent and lease payments, salaries, utility bills, insurance, and loan repayments. Examples of fixed costs include taxes and business licenses.
Fixed costs do not change over time. A business's output can influence variable costs. Examples of fixed costs include insurance premiums, rent, and taxes. Variable costs include things like commissions, credit card fees, and direct labor.
By placing fixed costs in the indirect expense section of the income statement, operating profit can be achieved. Depreciation is one typical fixed expense that is recorded as an indirect expense.
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