Give an example of currency translation that is a change in numeraire
What will be an ideal response?
A firm has income in yen from overseas operations that may be valued in dollars.
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Which of the following statements is false?
a. The formula for computing the predetermined overhead rate uses Actual overhead as the numerator. b. Cost allocations can be made across time periods or within a single time period. c. Normal costing assigns overhead to products using a predetermined overhead rate. d. The formula for computing the predetermined overhead rate uses Budgeted overhead as the numerator.
Recommendations should flow naturally from one's summary and conclusions and should not come as a surprise to the reader
Indicate whether the statement is true or false
"Direct recognition" occurs when the insurance company
A) reduces dividend payments because of an unexpected increase in costs. B) increases premiums in recognition of the insureds advancing age. C) reduces the rate earned on a portion of the cash value, because the insured has taken out a policy loan. D) revises its actuarial factors to reflect the changing risk environment.
Suppose that an issuing bank pays on documents that are conforming to the requirements of the letter of credit, but the seller has shipped worthless goods to the buyer. Which of the following statements, if any, are true?
A) As long as the documents strictly comply with the letter of credit requirements, the bank will not have to reimburse the buyer. B) If there is fraud in the transaction, the bank will have to reimburse the buyer and seek its remedies against the seller. C) The strict compliance principle insulates the bank from liability, since it assures the bank that the underlying contract between the buyer and seller is entirely independent from the letter of credit contract. D) A and C.