If the inflation rate in the United States is expected to average 4% in the future and the inflation rate in Denmark is expected to average 7%, what spot rate is expected to be in effect in three years? Assume the Danish kroner per U.S
dollar exchange rate is now $0.20.
A) $0.245
B) $0.219
C) $0.177
D) $0.192
E) $0.206
B
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The collection of products, services, and their corresponding brands that make up a company is called a ________
A) marketing audit B) mission statement C) tactical plan D) business portfolio E) strategic plan
Hazard Company is considering the acquisition of a machine that costs $375,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual cash flow of $150,000, and annual operating income of $87,500. What is the estimated cash payback period for the machine?
A) 3 years B) 4.3 years C) 2.5 years D) 5 years
The component of revenue that is addressed when a company offers a frequent shopper award is:
a. frequency b. selling price c. selling process d. customers
Abbott Company purchased $6,500 of merchandise inventory on account. Abbott uses the perpetual inventory system. Which of the following entries would be required to record this transaction?
A.
| Inventory | 6,500 | |
| Accounts Payable | 6,500 |
B.
| Accounts Payable | 6,500 | |
| Inventory | 6,500 |
C.
| Cost of Goods Sold | 6,500 | |
| Accounts Payable | 6,500 |
D.
| Accounts Payable | 6,500 | |
| Purchases | 6,500 |