Kelly has just been appointed the manager of a company that has begun the direct export of its product. What precautions should he take to assure that the company will in fact be paid for its products when the company has never dealt with the buyers before and is new to the international legal environment?
The company should have a good working relationship with a bank that deals in the international sector and that has correspondent banks around the world. The company should consider requiring the buyers to furnish a letter of credit, which is a promise by a buyer's bank to pay the seller provided that certain conditions are met. A letter of credit transaction affords the seller protection against the possibility of nonpayment when dealing in the international sector.
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Rise Corp received payment from its customers for previous sales on credit. What was the impact on its working capital?
a. Increase in working capital b. Decrease in working capital c. No effect on working capital d. Unable to determine
Development of a transfer price involves
a. the use of the highest external market price so that the transferring division is very profitable. b. determination of an appropriate profit markup. c. computation of the selling and delivery costs of the item being transferred. d. the use of a team of lawyers representing the outside interests of the company.
Salmone Company reported the following purchases and sales of its only product. Salmone uses a periodic inventory system. Determine the cost assigned to the ending inventory using FIFO.DateActivitiesUnits Acquired at CostUnits Sold at RetailMay 1Beginning Inventory150 units @ $10.00 5Purchase220 units @ $12.00 10Sales 140 units @ $20.0015Purchase100 units @ $13.00 24Sales 90 units @ $21.00
A. $2,460 B. $2,980 C. $2,850 D. $2,590 E. $5,440
Which of the following do you not have to consider when evaluating the quality of Internet resources?
A) the date the content was written or revised B) sources for factual information on a page C) the sponsorship of the website D) the name, address, and telephone number for verification E) the number of links to related newsgroups and listservs