Liquidity and efficiency are the ability to meet short-term obligations and to efficiently generate revenue.
Answer the following statement true (T) or false (F)
True
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Describe the Target Scan study conducted by Backer Spielvogel & Bates
What will be an ideal response?
On November 12, Higgins, Inc., a U.S. Company, sold merchandise on credit to Kagome of Japan at a price of 1,660,000 yen. The exchange rate was $0.00853 per yen on the date of sale. On December 31, when Higgins prepared its financial statements, the exchange rate was $0.00859. Kagome paid in full on January 12, when the exchange rate was $0.00877. On December 31, Higgins should prepare the following journal entry:
A. Debit Accounts Receivable-Kagome $99.6; credit Foreign Exchange Gain $99.6. B. Debit Foreign Exchange Loss $99.6; Accounts Receivable-Kagome $99.6. C. Debit Sales $99.6; credit Foreign Exchange Gain $99.6. D. Debit Foreign Exchange Loss $99.6; credit Sales $99.6. E. No journal entry is required until the amount is collected.
Which of the following statement is FALSE about the expected value approach to make decisions under risk?
a. It assumes that the decision maker is rational and will choose the optimum decision with the highest expected value. b. It ignores the elements other than monetary profits. c. It takes irrational factors into consideration. d. It ignores factors such as quality of life or the current monetary status of the decision maker.
Two projects each require a current cash expenditure of $10,000. Project A will generate cash inflows of $2,000 per year for the next twelve years. Project B is expected to return $6,000 in 1 year, $4,000 at the end of year 2, and $3,000 in 3 years
Which project should be selected if funds are unavailable to finance both and capital costs are 6%? A) Project B because it has a shorter payback period. B) Project B because it has a higher IRR C) Project A because it has a higher IRR D) Project A because it has a higher NPV E) Project B because it has a higher NPV