A U.S. company sells merchandise today to a British firm for 210,000. The current exchange rate...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A U.S. company sells merchandise today to a British firm for £210,000. The current exchange rate is $1.35/£, the account is payable in six months, and the company chooses to disregard any hedging techniques designed to reduce the risk of changes in the exchange rate. If the exchange rate changes to $1.39/£, the U.S. company will realize a of A) loss; £8,400 B) gain; £8,400 C) loss; $8,400 D) gain; $8,400 A U.S. company sells merchandise today to a British firm for £210,000. The current exchange rate is $1.35/£, the account is payable in six months, and the company chooses to disregard any hedging techniques designed to reduce the risk of changes in the exchange rate. If the exchange rate changes to $1.39/£, the U.S. company will realize a of A) loss; £8,400 B) gain; £8,400 C) loss; $8,400 D) gain; $8,400
Expert Answer:
Answer rating: 100% (QA)
The option d is right option Explanation The company has Br... View the full answer
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
Posted Date:
Students also viewed these accounting questions
-
A manufacturing company has provided you with the following data, which relate to component RYX for the period which has just ended: Overheads are absorbed at a rate per standard labour hour. (a) (i)...
-
The Piano Studio Ltd. has provided you with the following information with respect to its piano inventory for the month of August. The company uses the specific identification cost formula....
-
Nolevco is funded 100% through equity. The required rate of return to its equity is 15%. Alldebtco is funded 100% through debt; the interest rate on its debt is 6% and its tax rate is 20%. Suppose...
-
rn rn Anushka (an Australian Tax resident) works as an employee for a child care centre, Brilliant Kids Pty Ltd, on a permanent part-time basis while she runs her business as a day carer for her own...
-
Based on your experience as a team member, do you agree that the three requirements are mandatory for a collaborative team? Justify your answer. Modify those requirements in any way you see fit to...
-
(a) Design an ideal noninverting op-amp circuit with the configuration shown in Figure 9.15 to have a closed-loop gain of \(A_{v}=15\). When \(v_{0}=-7.5 \mathrm{~V}\), the current in any resistor is...
-
What is the critical test for any accounting system? Does this test rely on syntactic, semantic or pragmatic perspectives?
-
What is the probability of finding a particle in a box of length L in the region between x = L/4 and x = 3L/4 when the particle is in (a) The ground level and (b) The first excited level? (c) Are...
-
1. What strategies did Lending Club employ to mitigate "adverse selection" on its platform? Were these strategies successful? a) in the early days of the platform? b) more recently? 2. Lending club...
-
For 2021, Essence Company, a calendar year taxpayer, will change from the cash method for tax purposes to the accrual method. At the end of 2020, Essence showed the following items. Accounts...
-
The company only has a $3,400,000 million dollar budget. All the Business Strategies are independent. Based on the information you have about the business strategies which ones, if any, would you...
-
Which method are classes that implement java.io.Serializable required to implement? A. cereal() B. deserialize() C. serial() D. serialize() E. clone() F. None of the above.
-
What is the output of the following application? Assume /all-data exists and is accessible within the file system. A. The code does not compile. B. The number of lines in all files in a directory...
-
What is the result of executing the following application multiple times? A. Only the first stream prints the same order every time. B. Only the first and second streams print the same order every...
-
What is the result of compiling and executing the following program? Assume the current directory is /stock and the path /stock/sneakers does not exist prior to execution. A. The directory...
-
What is the output of the following method applied to an InputStream that contains the first four prime numbers, stored as bytes: 2, 3, 5, 7? A. 5 B. 7 C. The code does not compile. D. The code...
-
Business income is income the taxpayer earn from : Question 6 options: A profession or A trade or A manufacture or undertaking of any kind All of the above Question 7 (1 point) Business income does...
-
Velshi Printers has contracts to complete weekly supplements required by fortysix customers. For the year 2018, manufacturing overhead cost estimates total $600,000 for an annual production capacity...
-
Depreciation information for Buckingham Ltd. is given in BE9-4. Using the diminishing-balance method and assuming the depreciation rate is equal to one time the straight-line rate, calculate the...
-
At January 1, 2015, Hammersmith Limited reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings.................. $24,200,000 Accumulated...
-
Onwards and Upwards Corporation has paid cash dividends to its shareholders for eight consecutive years. The board of directors' policy requires that in order for a dividend to be declared, cash...
-
Which of the following is the reason preliminary estimates of materiality should be made by the auditor? a. Materiality guidelines cannot be adjusted after the audit procedures are conducted. b....
-
Which of the following is not a part of the audit risk model? a. Inherent risk. b. Control risk. c. Materiality risk. d. Detection risk.
-
Which of the following is a correct statement? a. There is an inverse relationship between risk levels and the amount of necessary audit effort. b. There is a direct relationship between risk levels...
Study smarter with the SolutionInn App