If beginning Accounts Payable is $10,000 and the purchases on account are $100,000 and payments made on account were $80,000 during the period, then the ending Accounts Payable balance is:
A. $30,000 debit
B. $30,000 credit
C. $20,000 credit
D. $20,000 debit
Answer: B
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Which of the following is cited as a good reason for NOT hedging currency exposures?
A) Shareholders are more capable of diversifying risk than management. B) Currency risk management through hedging does not increase expected cash flows. C) Hedging activities are often of greater benefit to management than to shareholders. D) All of the above are cited as reasons NOT to hedge.
Security A has an expected rate of return of 22% and a beta of 2.5. Security B has a beta of 1.20. If the Treasury bill rate is 2.0%, what is the expected rate of return for security B?
What will be an ideal response?
In 2018, Richard's Department Store changes its inventory method from FIFO to LIFO. Richard's uses the simplified LIFO method. Richard's year-end inventory under FIFO is as follows: 2017 - $300,000; 2018 - $350,000. The 2017 price index is 110% and the 2018 index is 120%. The 2018 ending inventory after adopting the LIFO method is
A. $350,000. B. $320,833. C. $322,727. D. $381,818.
Two drawbacks of a "think local, act local" multi-domestic strategy are __________.
A. that it is especially vulnerable to fluctuating exchange rates and that it can usually be defeated by companies employing cross-market subsidization tactics. B. excessive vulnerability to fluctuating exchange rates and having to craft a separate strategy for each country market in which the company competes. C. hindering a company's transfer of competencies and resources across country boundaries (since somewhat different competencies and capabilities are likely to be employed in different host countries) and not promoting the building of a single, unified competitive advantage in all country markets where a company competes. D. greater exposure to both increases in tariffs and restrictive trade barriers and added difficulty in accommodating the diverse trade restrictions and regulatory requirements of host governments. E. not being able to export products manufactured in one country to markets in other countries and being largely unsuitable for competing in the markets of emerging countries.