Covered interest arbitrage moves the market ________ equilibrium because ________
A) toward; purchasing a currency on the spot market and selling in the forward market narrows the differential between the two
B) toward; investors are now more willing to invest in risky securities
C) away from; purchasing a currency on the spot market and selling in the forward market increases the differential between the two
D) away from; demand for the stronger currency forces up interest rates on the weaker security
Answer: A
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The Lennon Company uses a standard costing system and a flexible budget. At a normal level of activity of 15,000 units and 45,000 standard direct labor hours, the standard direct labor cost would be $270,000 . During June, 44,050 hours were worked to produce 14,000 units at an actual direct labor cost of $352,000 . The direct labor efficiency variance in June was
a. $20,300 (U). b. $12,300 (U). c. $12,300 (F). d. $15,300 (U).
Important keys for success in implementing work-site health promotion include long-term commitment, top management support, clearly defined objectives, and family involvement.
Answer the following statement true (T) or false (F)
Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $78,000 and $4200, respectively. During Year 2, Allegheny wrote off $7800 of Uncollectible Accounts. Using the percent of receivables method, Allegheny estimates that the ending Allowance for Doubtful Accounts balance should be $6400. What amount will Allegheny report as Uncollectible Accounts Expense on its Year 2 income statement?
A. $7800 B. $2200 C. $6400 D. $10,000
ABC sells refrigerators. Any refrigerator that fails before it is 3 years old is replaced for free. Of all refrigerators, 2% fail during their first year of operation; 4% of all 1-year-old refrigerators fail during their second year of operation; and 8% of all 2-year-old refrigerators fail during their third year of operation. It costs ABC $500 to replace a refrigerator, and ABC sells 6,000 refrigerators per year. Estimate the fraction of all refrigerators that will have to be replaced.
What will be an ideal response?