if the domestic price in canada is $0.75 and the domestic price in the united states is $1.00, what will canadian companies do?

Answers

Answer 1

If the domestic price ,produce more than what Canadians will purchase and export the extra to the US.

How is the domestic price ratio calculated?

The domestic resource cost ratio (DRC), which is expressed as a percentage, measures how much a project's domestic net inputs cost relative to its traded net outputs. A DRC value below (above) one is thought to signify the existence of net benefits (negative).

What is considered a trade?

Trade refers to the willingly exchange of goods or services between economic actors. Because exchanges are voluntary, trade is frequently viewed as being advantageous to both parties. Trading in the financial sector refers to the buying and selling of securities or other assets.

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Related Questions

boron company has sales of $60,000, beginning inventory of $7,000, purchases of $35,000, and ending inventory of $5,000. the cost of goods sold is

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The cost of goods sold is $37,000.

A periodic inventory system is a form of inventory valuation in which inventory accounts are updated at the end of the accounting period rather than after each sale or purchase. The cost of goods sold is the total amount paid by a company for expenses directly related to the sale of its products.

Some businesses may include direct labor associated with manufacturing or selling products raw materials packaging and merchandise purchased for resale. Adjusts the cost of crafted or purchased items as your inventory changes. For example, if 500 units were manufactured or purchased but the inventory was increased by 50 units the cost of 450 units would be the manufacturing cost of the goods sold.

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calculate the proportions of debt (d/v) and equity (e/v) that you would use for estimating vinyard's weighted average cost of capita

Answers

The proportions of debt (d/v) and equity (e/v) that you would use for estimating Vinyard's weighted average cost of capita is 25% debt and 75% equity.

What is debt?

⇒ An obligation to pay money or another agreed-upon value to a third party, the creditor, is known as a debt. Debt differs from an immediate purchase in that payments are deferred or made in installments. A sovereign state or nation, a local government, a business, or an individual may be liable for the debt. Contractual provisions governing the sum and schedule of principle and interest repayments often apply to commercial debt. Debt includes mortgages, bonds, notes, and loans. Debt is a form of financial transaction that is separate from equity in financial accounting. The phrase can also be used metaphorically to refer to duties of a moral nature and other interactions without a monetary exchange.

Calculation:

Weighted Average Cost of Capital is calculated by either Book Value weights or Market Value Weights.

Market Value weight is considered good to calculate WACC.

Hence correct answer is 25% debt and 75% equity

Debt Market Value weight = 1,000 / 4000 = 0.25

Equity Market Value Weight = 3,000 / 4,000 = 0.75

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Disclaimer: The question was given incomplete on the portal, here is the complete question.

Question: calculate the proportions of debt (d/v) and equity (e/v) that you would use for estimating Vinyard's weighted average cost of capital(WACC):

a.40% debt and 60% equity

b.50% debt and 50% equity

c.25% debt and 75% equity

d.75% debt and 25% equity

when creating the income statement, which statement is accurate? multiple choice revenues minus tax expense equals gross profit. revenues minus cost of goods sold equals gross profit. revenues minus depreciation expense equals gross profit. revenues minus general operating expenses equals gross profit.

Answers

When the income statement is being created, an accurate statement is B. revenues minus cost of goods sold equals gross profit.

How to find the gross profit ?

Gross profit is the amount of money a business makes after deducting costs for producing, distributing, and selling its goods or services.

A company's income statement will show gross profit, which is derived by deducting cost of goods sold (COGS) from revenue (sales). The income statement of a business will contain these numbers. Sales profit or gross income are other names for gross profit.

The gross profit, in simple terms, can be found in the income statement when cost of goods sold is subtracted from revenue.

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lean emphasizes all of the following except a. setup time reductions. b. cross training of workers. c. lot size reduction. d. increased utilization of machines.

Answers

Lean emphasizes increased utilization of machines.

Thus, the correct option is D.

What are machines?

The producer benefits from using machines in numerous ways, which tends to improve his output and income.

Large-scale production, the division of labor, and specialization are the results. These in turn boost output, cut expenses, and improve profits. Machines reduce labor and save time.

Robotics use in business can result in more high-skilled job opportunities. It will raise productivity at work and assist employers in maximizing staff working hours.

Additionally, it will support and permit overall economic growth and, in challenging times of inflation, even boost its GDP. A machine's primary function is to facilitate human activities such as lifting and transporting large objects.

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mno high yield bond fund has a public offering price (pop) of $120 per share and a net asset value (nav) of $116.40. what is the fund's sales charge (sc)?

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The fund's sales charge, given the Public Offering Price, and the Net Asset Value ( NAV), is $ 3. 60 per share

How to find the Fund Sales Charge ?

A sales charge is a commission that investors give to the financial intermediary, like a broker, financial planner, or investment advisor, in exchange for their mutual fund investment. This additional charge, which is indicated as a percentage of the investment value, is used to compensate the salesperson.

The Fund Sales Charge for MNO's High Yield Bond Fund is therefore:

= Public offering price per share - Net Asset Value

= 120 - 116. 40

= $ 3. 60 per share

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While preparing a budget, there are some estimates that must be made more than a year in advance. This particular aspect is not considered while preparing a _____.

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While getting ready a price range, there are a few estimates that ought to be made extra than a 12 months in advance. This precise component isn't always taken into consideration even as getting ready a unmarried duration price range.

The required details for budget period in given paragraph

Organizations in the Department of Health and Human Services use a way of investment for discretionary presents that divides an accredited mission into investment intervals known as price range intervals. The price range duration is the time period at some point of that you are legal to spend the finances offered and ought to meet the matching or fee-sharing requirement, if any, and is proven within side the Notice of Grant Award. Costs might not be incurred after the finishing date of the modern price range duration until you get hold of extra investment within side the shape of a non-competing continuation award for the subsequent price range duration or, in case you are within side the closing price range duration of the accredited mission duration, thru a no-fee extension. ONC made Recovery Act awards the use of diverse methods to defining the price range duration, which includes price range intervals which might be of the identical period because the mission duration.

For any price range duration with an finishing date that differs from the finishing date of the mission duration, you ought to get hold of ONC approval to hold over unobligated Federal finances to the subsequent price range duration.

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Wal-Mart is an example of a(n) ______ because it is a business with operations in multiple countries.
dual partnership
multinational organization
international partner
multinational corporation

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Wal-Mart is an instance of a multinational agency.

The required details for Wal-Mart in given paragraph

Walmart Inc. is an American multinational retail agency that operates a sequence of hypermarkets (additionally known as supercenters), discount branch shops, and grocery shops from the United States, founded in Bentonville, Arkansas. The enterprise turned into based by Sam Walton in nearby Rogers, Arkansas in 1962 and integrated below Delaware General Corporation Law on October 31, 1969. As of October 31, 2022, Walmart has 10,586 shops and golf equipment in 24 countries, running below forty six different names. The enterprise operates below the call Walmart within side the United States and Canada, as Walmart de México y Centro América in Mexico and Central America, and as Flipkart Wholesale in India. It has thoroughly owned operations in Chile, Canada, and South Africa. Since August 2018, Walmart held simplest a minority stake in Walmart Brazil, which turned into renamed Grupo Big in August 2019, with 20 percentage of the enterprise's shares, and personal fairness firm Advent International protecting eighty percentage possession of the enterprise.

They in the end divested their shareholdings in Grupo Big to French retailer Carrefour, in transaction worth R$7 billion and finished on June 7, 2022.

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The Federal Reerve decide to ell $50 million in government debt to houehold paying with checkable depoit. The current reerve requirement i 5%

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The reserve ratio is the percentage of reservable liabilities that commercial banks must retain and not lend or invest. The country's central bank—in the US, the Federal Reserve—determines this requirement. The term "cash reserve ratio" is also used to describe it.

What Does the Reserve Ratio ?One of the Federal Reserve's main tools for monetary policy is the reserve ratio. To increase the amount of money available in the economy, the Fed may decide to reduce the reserve ratio. Borrowing becomes more appealing to customers when banks have more money to lend at lower interest rates.In contrast, the Fed raises the reserve ratio requirement to cut down on the amount of money that banks must lend. By slowing the economy, the Fed can lower the amount of money in circulation and reduce inflation.The Fed also establishes reserve ratios to make sure banks have cash on hand to avoid running out of money in the event of frantic depositors requesting large-scale withdrawals. If a bank lacks the money to meet its reserve requirement, it may borrow money from the Fed to do so.Banks are required to store reserves either as cash in their safes or as deposits with a Federal Reserve Bank. The Federal Reserve started giving banks interest on these reserves on October 1, 2008.This rate was known as the interest rate on required reserves. There was also an interest rate on excess reserves (IOER), which is paid on any funds a bank deposits with the Federal Reserve in excess of their reserve requirement. The interest on reserve balances, a new, more straightforward measure, took the place of the IORR and IOER on July 19, 2021.The IORB rate is 0.10 percent as of 2022.

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Please help!

The lack of height and shape makes _______ difficult to present.


Culinary for Pennfoster

Answers

The lack of height and shape makes body shape difficult to present.

What do you mean by body shape?

The shape of the human body is a complicated phenomena with intricate intricacy and purpose.

A person's overall shape or figure is mostly determined by how their skeletal systems are shaped, as well as how their muscles and fat are distributed.

Only until a person reaches adulthood does their skeletal structure grow and change; beyond then, it largely stays the same.

The epiphyseal plates of long bones close, stopping future growth, between the ages of 13 and 18, marking the typical end of growth.

Numerous features of body shape differ by gender, and the cultural history of the female body shape is particularly complex.

Anthropometry is the study of measuring and evaluating physical shape.

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if the (e.u.) imposes a quota limiting imports from the united states, what will happen to the market for euros and the exchange rate for the euro?

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If the (E.U.) imposes a quota limiting imports from the united states, Supply of the euro decreases; the euro appreciates to the market for euros and the exchange rate for the euro.

An exchange rate in the world of finance is the price at which one currency will be exchanged for another. The majority of the time, currencies are national ones, but they can also be supra-national ones like the euro or sub-national ones like Hong Kong.

Decisions made by people, corporations, and the government are impacted by changes in the currency rate. This has an impact on the balance of payments, inflation, and economic activity overall. Exchange rates can be calculated in a variety of ways.

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at the present time, three waters company (twc) has 15-year noncallable bonds with a face value of $1,000 that are outstanding. these bonds have a current market price of $1,329.55 per bond, carry a coupon rate of 12%, and distribute annual coupon payments. the company incurs a federal-plus-state tax rate of 25%. if twc wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? (note: round your ytm rate to two decimal place.)

Answers

1. TWC’s after-tax cost of debt = 11.10%*(1-25%) = 11.10%*0.75 = 0.08325 = 8.33%

2. TWC after-tax cost of debt = RATE(nper,pmt,pv,fv)*(1-tax rate)

TWC after-tax cost of debt = RATE(15, 12%*1000, -1,329.55, 1,000)*(1-25%)

TWC after-tax cost of debt = RATE(15, 120, -1,329.55, 1,000)*0.75

TWC after-tax cost of debt = 0.08126555 * 0.75

TWC after-tax cost of debt = 0.0609491625

TWC after-tax cost of debt = 6.09%

What is cost of debt?Debt is one part of a company’s capital structure, which also includes equity. Capital structure deals with how a firm finances its overall operations and growth through different sources of funds, which may include debt such as bonds or loans.The cost of debt measure is helpful in understanding the overall rate being paid by a company to use these types of debt financing. The measure can also give investors an idea of the company’s risk level compared to others because riskier companies generally have a higher cost of debt. The cost of debt is the effective rate that a company pays on its debt, such as bonds and loans.

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super-tee has a contribution margin of 25%. how many t-shirts (rounded to the nearest shirt) must be sold in order for the company to break even?

Answers

1) Contribution margin = Selling price per shirt - Direct materials per shirt - Direct labor per shirt - Variable overhead per shirt

= $16 - $5.75 - $1.25 - $0.6

= $8.4

The answer is d.

2) Contribution margin per unit = Selling price per shirt * 25%

= $16 * 25%

= $4

T-shirts to be sold = Fixed overhead / Contribution margin per unit

= $43,000 / $4

= 10,750

The answer is b.

3) Shirts to be sold = (Fixed overhead + Target profit) / Contribution margin per shirt

= ($43,000 + $20,000) / $5

= 12,600

The answer is c.

4) Income from operations = (Sales * Contribution margin ratio) - Fixed costs

= ($2,000,000 * 20%) - $100,000

= $300,000

The answer is a.

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kevin is offered a job at another company that interests him, but he decides to stay where he is because he has a strong bond with his manager. steve, on the other hand, is also offered another job and decides to take it because he does not like the way his manager treats people and has a low trust in him. kevin staying is an example of

Answers

Kevin is a case of bridge employment since, in accordance with the provided statement, he is offered a position at a different firm that piques his interest.

What is a company's straightforward definition?

A corporation is a legal body formed by a number of people to conduct and manage a business venture, whether it be industrial or agricultural. Depending on the corporations act of its country, a corporation may be set up in a variety of ways for taxes and financial responsibility reasons.

Is it a business or a company?

A legitimate business title is the name that a venture uses, which is the main distinction here between company and a business name. But a business name is a separate legal entity.

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The complete question is-

Kevin is offered a job at another company that interests him, but he decides to stay where he is because he has a strong bond with his manager. Steve, on the other hand, is also offered another job and decides to take it because he does not like the way his manager treats people and has a low trust in him. Kevin staying is an example of

a. bridge employment

b. management driving retention

c. boomeranging

d. employability

what suggestion has former lieutenant governor bob bullock made to help avoid further fiscal crises?

Answers

The suggestion that former Lieutenant Governor Bob Bullock has made to help avoid more fiscal crises is to expand the sales tax base

What is a fiscal crisis?

This occurs when the deficit in public finances clearly exceeds 3 percent of GDP, with a negative trajectory, that is, a growing deficit over time and their ability to collect enough taxes for that spending. The governments can increase their spending by including among their responsibilities other functions, such as social programs, subsidies, guaranteed prices, and the like.

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while product placement blurs the line between advertising and content, immersive advertising completely erases the line. a. true b. false

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On the other hand, a product placement is a part of a story that already exists. You are not watching a product placement for the product itself, but rather for the story it is part of, unlike an advertisement.

Every piece of modern media is partially funded by sponsors, all of whom want to include their products or names in the story.

In advertising, what is product placement?

Product placement is a cutting-edge method of merchandising used by brands to reach their intended audiences without employing traditional overt advertising. Product placement is also known as embedded marketing because the product is embedded in another type of media.

Which three kinds of product placement exist?

There have traditionally been three primary types of product placement: placement of the screenplay, script, and plot.

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sale price per unit $420 variable costs per unit: manufacturing $260 marketing and administrative $40 total fixed costs: manufacturing $770,000 marketing and administrative $200,000 if a special sales order is accepted for 4,000 seats at a price of $375 per unit, fixed costs remain unchanged, and no variable marketing and administrative costs will be incurred for this order, how would operating income be affected? (note: assume regular sales are not affected by the special order.)

Answers

The operating income would be increased by $100,000.

What is income?

Income is money received on a regular basis, typically from employment, investments, or other sources. It is an important factor in measuring an individual's or a family's financial status. Income can be used to pay for basic necessities such as food, housing, and clothing, as well as more discretionary items such as vacations and entertainment. Income is also a key factor in determining the amount of taxes owed to the federal and state governments. Generally, the higher the income, the higher the tax rate. Income is also an important measure of economic well-being, as it reflects an individual's ability to access goods and services.

This is because the special order will have a unit price of $375 per unit, while the regular sale price per unit is $420.
Thus, the total revenue from the special order will be $1,500,000 ($375 x 4,000 units).
The variable costs associated with this special order would be $1,040,000 ($260 x 4,000 units).
The difference between these two numbers is the operating income associated with the special order, which is $460,000. Since the total fixed costs remain unchanged, the additional operating income from the special order is $100,000 ($460,000 - $360,000).

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3. Describe the advantages of vegetative propagation.​

Answers

Answer:

Explanation:

advantages of vegetative propagation ;

1. seedless plants can be propagated

2. It produces plants quickly

3. Desirable character of fruit can be produced

a broker-dealer is running a sales contest offering a bonus to any agent who sells a specified amount of a money market mutual fund. an agent is only

Answers

Investors should be supplied with unique information when purchasing mutual funds.

When has a retail patron used a recommendation?

A retail client “uses” a suggestion when, as a end result of the recommendation: (1) the retail customer opens a brokerage account with the broker-dealer, regardless of whether or not the broker-dealer receives compensation; (2) the retail client has an present account with the broker-dealer and receives a recommendation

The Securities and Exchange Board of India (SEBI) is a regulatory body that protects the interests of those who make investments in the securities market. It additionally regulates the functioning of the stock markets and mutual money in the u . s . a .

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after signing a lease agreement, a company records a right-of-use asset and a liability on the balance sheet that is equal to the present value of the lease payments. what type of lease has the company signed?

Answers

The execution of a lease, a business adds a right-of-use asset and a liability to the balance sheet that are each equal to the present value of the lease payments. Calculations of lease payments should take into account bargain purchasing opportunities.

Where does right of use asset go on balance sheet?

For a lease to be considered a sales-type lease, it must fulfill the following requirements. It is likely that the lessee will make the required payments.

The guaranteed residual value should not be included in the lease liability by the lessee. The lease should be identified as an operational lease for accounting purposes. cheap purchase choices, executory fees, upfront direct expenses, and brief leases.

For operating leases, a right-of-use asset and lease obligation are both represented as independent line items on the balance sheet in accordance with ASC 842. The difference between the cash paid for leases and the straight-line lease expense will often be represented by the combined change of the two accounts.A lessee's right to use an asset for the duration of a lease is known as a right-of-use asset.

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Holding current assets constant, an increase in current liabilities will decrease the current ratio True or False

Answers

Answer:

true

Explanation:

Holding current assets constant, an increase in current liabilities will decrease the current ratio, is the true statement.

What is current ratio?

Understanding current ratios. The current ratio calculates how well a company is able to cover its short-term or current liabilities, such as debts and payables, with its cash, inventory, and short-term receivables.

A healthy current ratio is normally between 1.5 and 2, but it occasionally depends on the sector of the economy in which your business operates. A corporation can use a current ratio to determine whether it has enough cash flow, should the need arise, to cover its immediate responsibilities and debts.

Current assets and liabilities are equal for a corporation with a current ratio of 1.0. Although it differs from sector to sector, the average current ratio falls between 1.0 and 3.0.

Thus, the true statement.

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Sales, purchasing, and shipping documents are all considered examples of to an accounting system.

a. True
b. False

Answers

Sales, purchasing, and shipping documents are all considered examples of to an accounting system.

The  above statement is True.

What do you mean by sale?

In a contract for the sale of goods, the seller transfers or promises to transfer the buyer's ownership of the products in exchange for payment, or the price. There could be a sale agreement between two co-owners. A selling agreement may be either unconditional or conditional.You might have an apple orchard with apples, for instance. You consent to selling a buyer 1000 apples once they are ripe. Although the sale of these commodities must take place in the future, the agreement has already been reached and the goods have been identified.

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what is the current value of a $5,000 face value strips with 6 years to maturity and a yield to maturity of 8.1%?

Answers

FACE VALUE STRIPS: 5000

YTM:8.1%/2= 4.05%

TIME TO MATURITY:6*2

CURRENT VALUE:$3105.02

a company had average total assets of $907,000. its gross sales were $1,087,000 and its net sales were $990,000. the company's total asset turnover equals:

Answers

Given that the company had average total assets of $907,000, gross sales were $1,087,000 and its net sales were $990,000. the company's total asset turnover equals 1.09.

What Is the Asset Turnover Ratio?

In accounting, asset turnover refers to a ratio that measures the value of a company's revenues relative to the value of its assets. It is used as an indicator of the efficiency with which a company is using its assets to generate revenue.

The higher the ratio of asset turnover , the more efficient a company is at generating revenue from its assets. However, when a company has a low asset turnover ratio, it indicates it is not efficiently using its assets to generate sales.

The Asset Turnover ratio:

= $990,000 / $907,000

= 1.09

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Please select the word from the list that best fits the definition this invisible barrier prevents a woman from gaining upper-level positions in business.

Answers

The term "glass ceiling" describes the imperceptible barrier that keeps women from advancing to senior positions in business.

What is Glass ceiling?

The phrase "glass ceiling" describes a figurative invisible wall that keeps some people from getting promoted to management and executive-level positions within a company or sector. The expression is frequently used to describe the challenges minorities and women encounter while attempting to advance in a male-dominated business hierarchy.

These people are more likely to be prevented from succeeding through accepted norms and unconscious prejudices than through clearly specified business regulations since the obstacles are most frequently unwritten. The metaphor of the "glass ceiling" alludes to the difficulty minorities and women, in particular, have in advancing their careers.

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refer to the total utility curve in the accompanying graph to answer the questions. a graph with utis on the vertical axis and quantity of the good consumed on the horizontal axis. both axes run from 0 to 9. the graph contains one curve labelled as a total utility. between the quantities of 0 and 4, the total utility curve is rising at an increasing rate. between the quantities of 4 and 6, the total utility curve rises at a decreasing rate. after a quantity of 6, the total utility curve begins to fall. utility is maximized when how many units of the good are consumed?

Answers

A consumer's overall benefit from consuming a certain amount of a good or service is shown by the utility function. The utility is maximized when the following units of the good are consumed:

The slope of the utility function is determined by the marginal utility. It determines how much more value a consumer gets from consuming an extra unit of a good or service.

The utility is greatest when 6 units of the good are used.

The overall utility is maximized when the marginal utility is equal to zero. At the point of maximum utility, the slope of the utility function (marginal utility) equals zero. According to the graph above, the marginal utility at q = 5 units is equal to zero.

After the fifth unit is spent, the marginal utility of any additional units of the good is negative.

The client will consume five units before the marginal utility of each extra unit is negative.

The marginal utility diminishes once the fourth unit of the good is eaten.

when the overall utility rises with each additional unit of energy at a

When the overall utility increases at a slower pace with each additional unit of energy, it is said to have diminishing marginal utility. Disappearing marginal utility occurs when the overall utility rises with each additional unit of a good consumed at a decreasing pace. The accompanying image shows that once the fourth unit of the good is consumed, diminishing marginal utility becomes apparent.

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if the static budget amount is $6,200 and the flexible budget amount is $4,500, then sales volume variance will be

Answers

If the static budget amount is $6,200 and the flexible budget amount is $4,500, then sales volume variance will be $1,700.

The sales volume variance is a measure of the difference between the actual and anticipated number of units sold, multiplied by the planned price per unit. By calculating the gap between actual and budgeted sales volume, professionals can gain insight into the effectiveness of their sales efforts.

They can look at their actual and planned sales volumes, average profit, revenue per unit, and contribution per unit to get a better idea of how successful their sales strategies have been. A favorable sales price variance indicates that the selling price was higher than expected, which could be the result of fewer competitors, strong sales and marketing efforts, or better product differentiation.

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Some private schools request greater financial detail by asking you to fill out a ________.

A. financial aid letter
B. CSS Profile
C. loan application
D. Student Aid Report

Answers

Answer:

CSS profile

Explanation:

1. compute total variable cost per unit. 2. compute total fixed costs. 3. prepare a flexible budget at activity levels of 12,000 units and 16,000 units.

Answers

Total Variable cost per unit Direct materials($336,000/14,000) $ 24.00 Direct labor($588,000/14,000) $ 42.00 Indirect materials($392,000/14,000) $ 28.00.

What are a variable cost and an example?

Costs that vary as the volume changes are known as variable costs. Raw materials, piece-rate labor, production supplies, commissions, shipping charges, packing costs, and credit card fees are examples of variable costs. The variable costs of manufacturing are sometimes referred to as "Cost of Goods Sold" in accounting accounts.

What exactly are fixed expenses and variable costs?

Expenses that remain constant regardless of how much product a company produces are referred to as "fixed costs." A cost is said to be "variable" if it changes in response to shifts in production levels.

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mary anne (35) has two dependent children, jackson (17) and mabel (4). they lived in the u.s. all year. she earned $16,684 wages in 2021. she had no other income and no adjustments. she is filing head of household. she has no tax liability. what is the amount of child tax credit (ctc) she can receive? $4,000. $6,600. $6,000. $3,600

Answers

The amount of child tax credit that Mary Anne can receive in 2021, can be found to be B. $ 6, 600

What is the Child Tax Credit ?

Dollar per dollar, the Child Tax Credit reduces taxpayers' tax obligations. The maximum yearly credit under the American Rescue Plan was raised from $2,000 per kid (under age 17) in 2020 to $3,000 per child (under age 18) or $3,600 (children younger than 6), and the 2021 credit was made completely refundable.

This means that the Child Tax Credit to Mary Anne for Mabel who is 4 years old is $ 3, 600. The CTC for Jackson at 17 would be $ 3, 000.

The total child tax credit is therefore :

= 3, 600 + 3, 000

= $ 6, 600

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why must the two-transaction perspective be used for recording foreign currency transactions under u.s. gaap?

Answers

For recording foreign currency transactions under U.S. GAAP, the two-transaction viewpoint, which involves one transaction for selling and another for extending credit in a foreign currency, may be employed.

What is the difference between the one transaction perspective and the two transaction?

Foreign accounting, also known as foreign exchange accounting, is the area of accounting where a company's total transactions are recorded in currencies other than the one that serves as its functional currency. For instance, foreign accounting would apply if an Indian corporation had a subsidiary in the United States. The Generally Accepted Accounting Principles do not recognize the one- or two-transaction perspectives for accounting for foreign currency transactions, unless the Financial Accounting Standard Board approves the use of the two-transaction perspective. The distinction between the two is considered a gain or loss. Such a gain or loss is reported separately from Sales in the profit-and-loss statement.

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