Ch 2: The Acct cycle dung the DeI'IOd
Score: 98.93/100 Palms 98.93 %
Questlan 4(of14] v >
4. Award: 6.21 out of 7.14
Below are the external transactions for Shockers Incorporated.
1. Issue common stock in exchange for cash.
2. Purchase equipment by
lhis window shows what is correct and incorrect for the work you have completed so far.
Even if all ofthe work you have done so far is correct, you may not have completed everything.
5 yelu e:
During December. Far West Services makes a $3
Seminoles Corporations scal year-end is December 31, 2018. The following is a partial adjusted trial balance as of December 31.
Foreign Exchange Market
Deepest and widest market in the world
Daily global value of foreign exchange trading = $4 Trillion
Open 24 hours/day
Little opportunity for arbitrage
History of Foreign
Gold Standard (1876 1913)
Each currency was
Chapter 2 Problems
Oscars Dog Treats had a cash flow to creditors of $2,840, a cash flow to stockholders of $1,630 last year. The
firm spent a net of $1,420 on fixed assets and reduced net working capital by $330. What was the operating
Interest Rate Parity (IRP)
Market forces cause the forward rate to differ from the spot rate by
an amount that is sufficient to offset the interest rate differential
between the two currencies.
Then, covered interest arbitrage is no longer feasible, and
What is a Currency Derivative?
A currency derivative is a contract whose price is derived from
the value of an underlying currency.
Examples include forwards/futures contracts and options
Derivatives are used by MNCs to:
Speculate on future
Arbitrage can be loosely defined as capitalizing on a
discrepancy in quoted prices. Often, the funds invested
are not tied up and no risk is involved.
In response to the imbalance in demand and supply
resulting from arbitrage act
Which of the following describes futures contracts?
a. right to buy or sell foreign exchange
b. customized features for settlement
d. None of the answers are correct.
Which of the following are true of options?
a. They allow both
Exchange Rate Movements
If the exchange rate goes from $2.10/ to $1.90/
A will buy fewer $s but a $ will buy more
Practice for Test 2
You have a sampling of returns for the Malta Stock Fund. The returns are 7.25
percent, 5.63 percent, 12.56 percent, and 1.08 percent. What is the average
arithmetic return and variance of this sampling?
B. 6.63%; .
Test 1 Review material
Chapter 1 Introduction
- basic 3 functions of organization
- goods vs. services, comparison of their characteristics: tangible output, facilitating goods
- scope of OM
- value addition
- approaches to decision making: model, quantit
High-Low Cost Estimation Method
Use the high-low method to estimate the per-unit variable costs and total fixed costs for
the canoe product line.
VRmanufacturing = 140,000 - 108,000 = $200
High FCmanufacturing = 140,000 200 (400) = $60,000
Chapter 9 Reading Notes
1. What are the four advantages of budgeting?
Information for Decision Making
Standards for Performance Evaluation
Improved Communication and Coordination
2. What is a Master Budget?
1. Which of the following is a characteristic of a Special Revenue Fund that differentiates it from a
i. C. A Special Revenue Fund is established only if a revenue source is restricted or
committed to expenditure f
Managerial Accounting Chapter 1
Manufacturing costs consist of acitivites and processes that convert raw materials
into finished goods. There are 3 manufacturing costs.
1. Direct materials- Raw materials that can be physically and directly