The hedging strategy that offsets foreign assets with foreign liabilities is known as ________ hedge
A) an income-statement
B) balance-sheet
C) decentralized debt
D) decentralized equity
Answer: B
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Whitney Company treats each division as a profit center and expects a 20 percent profit on its total production costs. Division A produces a part that it sells externally for $19.00. It also supplies this part to other internal divisions. Its variable production cost for the part is $13.70. Using a negotiated-price approach, what is the negotiation floor for Division A?
A) $13.70 B) $16.35 C) $16.44 D) $17.72
A chain retailer can maximize its buying power advantages through use of a(n) _____
a. informal buying organization b. resident buying office c. decentralized buying organization d. centralized buying organization
If an adjusting entry includes a debit to Rent Expense, it indicates that the payment of rent had been previously recorded as a(n) ________
A) deferred expense B) depreciation expense C) accrued expense D) accrued revenue
A firm is considering relaxing credit standards, which will result in annual sales increasing from $1.5 million to $1
75 million, the cost of annual sales increasing from $1,000,000 to $1,125,000, and the average collection period increasing from 40 to 55 days. The bad debt loss is expected to increase from 1 percent of sales to 1.5 percent of sales. The firm's required return on investments is 20 percent. The firm's cost of marginal investment in accounts receivable is ________. (Assume a 360-day year.) A) $5,556 B) $9,944 C) $12,153 D) $152,778