A scarcity of __________ can make it difficult for the subsidiary to import raw materials and spare parts for its production equipment.
Fill in the blank(s) with the appropriate word(s).
foreign exchange
A scarcity of foreign exchange can make it difficult for the subsidiary to import raw materials and spare parts for its production equipment.
You might also like to view...
Discuss the extent of protection against discrimination available to individuals with reference to their sexual orientation.
What will be an ideal response?
Which of the following information should be included in management's documentation regarding intangible assets?
a. Manner of acquisition. b. Basis for the capitalized amount c. Expected period of benefit. d. All the above should be included.
Answer the following statements true (T) or false (F)
1. In addition to considering both the division's operating income and its average total assets, residual income incorporates top management's target rate of return. 2. Residual income compares the division's actual operating income with the minimum operating income expected by top management for the given size of the division's average total assets. 3. Residual income is used as a key performance indicator for evaluating an investment center's financial performance. 4. In general, calculating ROI based on the gross book value of assets gives managers an incentive to continue using old, outdated equipment.
A company sold $12,000 worth of bicycles with an extended warranty. The company's experience is that warranty expense averages 2% of sales. The company should:
A. Consider the warranty expense a remote liability since the rate is only 2%. B. Consider the warranty expense a contingent liability. C. Recognize warranty liability when the company purchases the bicycles. D. Recognize warranty expense at the time the warranty work is performed. E. Recognize warranty expense and liability in the year of the sale.