What does purchasing power parity mean?
What will be an ideal response?
A frequently used metric of an overall economy is the purchasing power parity (PPP), a theory that states that if the exchange rates of two countries are in equilibrium, a product purchased in one will cost the same in the other, if expressed in the same currency.
You might also like to view...
When using the modified accelerated cost recovery system (MACRS) the highest amount of depreciation expense will be recognized in the year the asset is acquired.
Answer the following statement true (T) or false (F)
The PW Partnership's balance sheet includes the following assets immediately before it liquidates: Basis FMVCash$10,000 $10,000Unrealized receivables-0- 10,000Total$10,000 $20,000 In complete liquidation, PW distributes the cash to Pamela and the unrealized receivables to Wade (equal partners). Pamela and Wade each have an outside basis in PW equal to $5,000. PW has no liabilities at the time of the liquidation. What is the amount and character of Wade's recognized gain or loss?
A. $2,500 capital gain and $2,500 ordinary income. B. $0. C. $5,000 capital gain. D. $5,000 ordinary income.
The University Store, Inc. is the major bookseller for four nearby colleges. An income statement for the first quarter of the year is presented below:University Store, Inc.Income StatementFor the Quarter Ended March 31Sales $800,000Cost of goods sold 560,000Gross margin 240,000Selling and administrative expenses Selling$100,000 Administrative 110,000 210,000Net operating income $30,000On average, a book sells for $40.00. Variable selling expenses are $3.00 per book; the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder of the administrative expenses are fixed.The contribution margin for the University Store for the first quarter is:
A. $660,000. B. $140,000. C. $700,000. D. $180,000.
?The pre-approved amount of an open-end credit based on the borrow's ability to pay is known as the line-of-credit.
Answer the following statement true (T) or false (F)