The following journal entries would be recorded in Ayayai Corp.'s accounting records to record the declaration and payment of the cash dividend:
On November 1:
Retained Earnings 18,600 (9,300 shares x $2 dividend per share)
Dividends Payable 18,600
To record the declaration of a cash dividend of $2 per share on 9,300 shares of common stock.
On December 31:
Dividends Payable 18,600
Cash 18,600
To record the payment of the cash dividend declared on November 1.
The declaration of a cash dividend increases the company's liabilities, which are recorded in the Dividends Payable account. The corresponding decrease in Retained Earnings reflects the reduction in the company's equity resulting from the payment of dividends. When the dividend is paid on December 31, the Dividends Payable account is debited and the Cash account is credited to reflect the outflow of cash.
Overall, these entries ensure that Ayayai Corp. records the declaration and payment of the cash dividend accurately and in accordance with generally accepted accounting principles.
for more such questions on payment
https://brainly.com/question/26049409
#SPJ11
When there is low competition, firms can use a price strategy to recover research and development costs and make as much profit as possible.
When a market is experiencing low competition, firms can recover research and development costs by using a skimming price strategy.
What is a skimming price strategy?This refers to when companies sell goods at a high price because there isn't much competition.
As other suppliers enter the market and the competition increases, the companies will then reduce their prices.
Find out more on skimming prices at https://brainly.com/question/14228569
#SPJ1
According to interdependency theory, the net profit or loss a person encounters in a particular interaction is known as the?
According to interdependency theory, the net profit or loss a person encounters in a particular interaction is known as the outcomes.
According to the social exchange theory known as interdependence, interpersonal interdependence—which is defined as "the process through which interacting people impact one another's experiences"—defines interpersonal relationships.
The consequences of this structure for human psychology are discussed in the interdependence theory along with the structural characteristics that define relationships. The interdependence theory views the relationships between people as being as important as the individuals themselves, in contrast to most psychological theories that place a strong emphasis on the individual, contending that people's distinct experiences, cognitions, or personalities are to blame for how they behave.
This makes the theory a truly social psychological one and provides a much-needed explanation of the nature and consequences of interdependence.
To learn more about interdependence here,
https://brainly.com/question/3639547
#SPJ4
Which forms of bankruptcy most impact individuals with severe financial burdens?
Chapters 7 & 13 forms of bankruptcy most impact individuals with severe financial burdens.
Chapter 7 Bankruptcy
This is the bankruptcy that occurs the most frequently. This sort of bankruptcy is also known as a straight bankruptcy or liquidation bankruptcy because your unsecured debts are discharged once your case is through. The trustee may sell any non-exempt property you own and give the cash to your creditors.
Plans to Repay Bankruptcy Under Chapter 13
Chapter 13 of the bankruptcy code enables wage employees to discharge part or all of their debts by adhering to a three- to five-year repayment plan.
The length of the schedule may change depending on your income. If your income is below the median in your state, the bankruptcy will last three years. If your income is higher than that of comparable households, the court may impose a five-year sentence.
To learn more about Chapter 7 and 13 of Bankruptcy here
https://brainly.com/question/11361846
#SPJ1
A public strategic buyer uses all of the following in formulating its bid price for a given target EXCEPT A) Stapled financing B) Accretion / dilution analysis C) Pro forma credit impact D) Synergies
A public strategic buyer uses all of the following in formulating its bid price for a given target excepted Stapled Financing.
What is Stapled Financing?A pre-arranged finance package known as staple financing, is made available to potential buyers of an acquisition.The investment bank helping the selling firm arranges staple financing, which comprises all information about the lending package, such as the principal, fees, and loan covenants.The name comes from the fact that the acquisition term sheet's back is stapled with the financing information.A sort of M&A financial modeling known as accretion/dilution analysis is carried out in the pre-deal phase to assess the impact of the transaction on shareholder value and to determine if EPS for buying shareholders would rise or fall after the acquisition.In general, shareholders do not like dilutionary deals; nevertheless, a proposed combination is justified if it has the potential to create enough value to become accretive in a fair amount of time.While two businesses come together, their financial operations are improved to a higher extent than they were when the businesses were operating independently. This is known as financial synergy.Typically, M&A deals produce a larger company with more negotiating leverage to obtain a lower cost of capital. A merger or acquisition that results in a cheaper cost of capital is an example of financial synergy.Synergy in mergers and acquisitions occurs when the value created by combining two businesses is greater than the value created by the businesses operating independently.Know more about Synergies https://brainly.com/question/26886908
#SPJ4
When a firm produces a specific output level at a higher cost than the necessary cost for that level of output, it is called ______.
When a firm produces a specific output level at a higher cost than the necessary cost for that level of output, it is called x-inefficiency.
What is x-inefficiency?
A firm's observable behavior in practice that deviates from the efficient behavior expected or suggested by economic theory, as impacted by a lack of competitive pressure, is said to be X-inefficient.Harvey Leibenstein was the one who first proposed the idea of X-inefficiency.In 1966, Harvard University professor Harvey Leibenstein published an article titled "Allocative efficiency vs. X efficiency" in the American Economic Review, which proposed the concept of X-inefficiency.The term "X-inefficiency" refers to a firm's production that does not fully utilize its resources, with the end result reaching the efficiency frontier, which is the highest level of output achievable given the available resources and environment.To learn more about X-inefficiency with the given link
https://brainly.com/question/14316695
#SPJ4
No resubmission to Desktop Underwriter (DU) is required if the amount of verified reserves is ____ of the amount required to be verified.
No resubmission to Desktop Underwriter (DU) is required if the amount of verified reserves is 90% of the amount required to be verified. This is further explained below.
What is Desktop Underwriter (DU)?Generally, An automated mortgage underwriting system called Desktop Underwriter determines if a loan satisfies the criteria for approval.
In conclusion, If the amount of verified reserves is equal to or more than 90 percent of the amount that is needed to be verified, a resubmission to Desktop Underwriter (DU) is not necessary.
Read more about Desktop Underwriter (DU)
https://brainly.com/question/3639519
#SPJ1
In the theory of perfect competition, the assumption of easy entry into and exit from the market implies:_____.
The assumption in perfect competition that there is an easy entry and exit from the market implies that firms will make a zero economic profit in the long run.
Why do firms make a zero economic profit?In a pure competition, companies are allowed to freely enter and leave.
They take advantage of this to enter a market when prices are high and economic profit is being made.
As more firms enter, the economic profit keeps decreasing as prices decrease until this profit gets to zero and then turns to economic losses.
At this point, some firms will leave the market to stop making losses. When they do, the supply will decrease which leads to prices rising once more.
The cycle will then repeat itself and keep the companies at a zero economic profit in the long run.
Find out more on perfect competitions at https://brainly.com/question/1748396
#SPJ1
The lower-of-cost-or-market method can be applied to:_______
a. each major class or category of inventory.
b. total inventory as a whole.
c. each item in the inventory.
d. all of these choices are correct.
All of these choices are correct. The lower of cost or market method(LCM) is predicated on the assumption that when stockholders assess a company's inventory, it will be valued at either the market value or the historical cost, and that asset will be recorded accordingly on the balance sheet.
The cost of inventory at the time it was initially purchased is referred to as its historical cost. lower of cost or market method can be used to record the loss if the price at which the inventory may be sold dips below the net realizable value of the item, resulting in a loss.
To learn more about lower of cost or market method, click here
https://brainly.com/question/13149048
#SPJ1
Online content that has been created and posted by unpaid contributors such as customers or fans of a product or service is referred to as:.
Online content that has been created and posted by unpaid contributors such as customers or fans of a product or service is referred to as User-generated content.
User-generated contentUGC for short is content that is created, published or submitted by users of a brand. In numerous cases, it's the most influential content for brands. Usually, contributors are unpaid fans who encourage a brand instead of the brand promoting itself.
Online users are evolved increasingly savvy in knowing which companies are using messy marketing tactics, and which ones are being genuine and evident.
To learn more about User-generated content visit the link
https://brainly.com/question/3717193
#SPJ4
When the value of loans begins to drop, the net worth of financial institutions falls causing them to cut back on lending in a process called:
The correct option is a) deleveraging.
When the value of loans begins to drop, the net worth of financial institutions falls causing them to cut back on lending in a process called deleveraging.
What is Deleveraging?Deleveraging is the process by which a business or person tries to reduce their overall financial leverage. Deleveraging, then, is the elimination of debt and the polar opposite of leverage. Paying up any outstanding debts and commitments on an entity's balance sheet right away is the quickest way to deleverage.
The following strategies can be used by a business to reduce its debt:
By offering assets, bonds, and a portion of the firm for less, a company can reduce its debt.It can refinance existing debt to lower interest rates and monthly payments.By spending extra cash from business operations, it can reduce its debt.A publicly traded firm can reduce its debt by issuing more stock.FormulaDeleveraging's effects can be assessed using financial ratios including return on assets, debt-to-equity, and return on equity.
Return on Assets (ROA) = Net Income / Average Assets
Debt-to-Equity Ratio = Total Debt / Total Equity
Return on Equity (ROE) = Net Income / Total Equity
Example:
Company A uses $3 million in equity and $7 million in debt to purchase a $10 million asset. The net income for the year is $600,000.
ROA is 600,000/10,000,000, or 6%.
Debt-to-equity ratio: 2.3x (7,000,000/3,000,000).
ROE is equal to 600,000/3,000,000, or 20%.
Assume that at the end of the year, Company A decided to pay $5,000,000 of liabilities using $5,000,000 of assets. The corporation now has $5,000,000 in assets and $2,000,000 in debt
ROA:
600,000,000/5,000,000=12%
Debt-to-equity ratio: 0.6x (2,000,000/3,000,000).
ROE is equal to 600,000/3,000,000, or 20%.
Investors and lenders will favor scenario 2 over scenario 1 since scenario 2 involves less leverage and the company reports more attractive ratios.
Learn more about Deleveraging and troubled Asset here:
brainly.com/question/24448358
#SPJ4
Help please
Is political freedom or economic freedom more important in determining economic growth?
A.
Political freedom is more important, which can then lead to economic freedom.
B.
Both political freedom and economic freedom are equally important in determining economic growth.
C.
Neither political freedom nor economic freedom is very important in determining economic growth.
D.
Economic freedom is more important, which can then lead to political freedom.
The correct alternative is letter A. Political freedom is more important, which can then lead to economic freedom.
How does political freedom lead to economic freedom?Political freedom is a system that converges with democratic ideals, that is, greater freedom of social life and private property, which generates less state intervention in the economy, generating incentives for entrepreneurship and economic freedom.
Therefore, the greater the political freedom, the greater the economic freedom, which directly influences a country's economic growth rates.
Find out more about free market here:
https://brainly.com/question/24519548
#SPJ1
Empirical studies of labor markets have identified several benefits firms receive from paying workers more than the market-clearing wage. These studies tend to support the?
The empirical studies of labour market and wages support the labour market equilibrium.
On a general note ,workers prefer to work when the wages are a bit high that is supporting their economic status and firms prefer to hire when the wage is low.
The market clearing wage does not create any upward or downward pressure on wage resulting equilibrium of too many jobs or few available workers vice versa.
Hence, the value of marginal product of labour equals the competitive wage.
To learn more about labour markets here ,
https://brainly.com/question/1239696
#SPJ4
Regardless of which inventory method a company chooses to implement, what control is used periodically to maintain accurate records?
The control is used periodically to maintain accurate records of Physical count.
A physical count is a real remember of the products in inventory. This is a carefully coordinated counting system in which counting regions are segregated and counted groups take a look at assigned stock areas, recording their counts on matter sheets.
A physical inventory relies on a dependent method of counting an organization's inventory wherein a team of workers makes use of a predetermined technique to depend on the goods. Groups time table a physical stock be counted at the quit of a reporting period.
The difference between cycle count and physical inventory is that cycle matter is a technique of perpetual inventory counting while the physical inventory approach counts stock periodically, normally on an annual foundation.
Learn more about physical count here: https://brainly.com/question/24261653
#SPJ4
Drag each label to the correct location on the chart. Match each government action with its purpose and impact on the economy.
1. Charge a fee on airline tickets
2. Impose emissions standards for cars
3. Enforce antimonopoly laws
4. Pass worker health and safety laws
EXPLANATION
1) To increase national security, the government levies a fee on airline tickets. This increases ticket prices for consumers.
2) To ensure clean air, the government establishes emissions standards for cars. This policy is costly for companies to implement, and most companies pass this cost to consumers in the form of higher car prices.
3) To lower prices and provide more product options for consumers, the government enforces antimonopoly laws. These laws can potentially limit innovation by not allowing firms to make as much profit as possible.
4) To protect workers from harmful situations, the government passes worker health and safety laws. These laws limit how companies can use their resources. The costs to provide protective materials for employees can be passed on to consumers.
To learn more about Government actions' impact on economy click the links
https://brainly.com/question/17054623
#SPJ4
_____ are the link between public companies and the investors interested in buying their stock.
Stockbrokers are the link between public companies and investors interested in buying their stock.
A stockbroker is a regulated broker, broker-dealer, or registered investment adviser (in the United States) who can carry out transactions for financial market participants, including the buying and selling of stocks and other investments, in exchange for a commission, markup, or fee that may be based on a flat rate, a percentage of assets, or an hourly rate. The phrase also refers to financial institutions that provide these services.
A stockbroker is held to a great deal of accountability. They must stay current on the most recent tax legislation, market analysis, and financial news in addition to managing their clients' money in order to give them the highest return.
A stockbroker's main responsibility is to act as a broker in the sale of stocks and other investments. A stockbroker works for an investment company and typically receives a commission for recommending mutual funds, stocks, and bonds to potential clients.
To know more about stockbroker refer to: https://brainly.com/question/14915473
#SPJ1
In Argentina a currency crisis led the government to mandate that companies needed permission from the central bank to purchase foreign currency and exporters needed to liquidate any foreign exchange earnings within five days. This is an example of a(n) _______.
An example of currency control is used when the Argentine government mandated that all companies needed permission from the central bank to purchase foreign currency and exporters needed to liquidate any foreign exchange earnings within five days.
What is a currency control?Also known as foreign exchange controls, it refers to those forms of controls imposed by a government on the purchase/sale of foreign currencies by residents.
This control also extends to the purchase and sale of local currency by nonresidents or the transfers of any currency across national borders.
Hence, the practice of currency control is used when the Argentine government mandated that all companies needed permission from the central bank to purchase foreign currency and exporters needed to liquidate any foreign exchange earnings within five days.
Read more about currency control
brainly.com/question/1284126
#SPJ1
Renita, a merchant, has received a signed, written confirmation from Merchants, Inc. referring to goods she had not ordered. Renita should a. return the goods within two weeks of their delivery with a note attached saying she will not pay for the goods. b. object to the confirmation in writing within 10 days. c. call the seller and object to the confirmation as soon as she gets back from her two-week vacation. d. ignore the confirmation.
Renita, a merchant, has received a signed, written confirmation from Merchants, Inc. referring to goods she had not ordered. Renita should object to the confirmation in writing within 10 days. This is further explained below.
What are Merchants?Generally, trades in bulk, particularly with nations outside of the country or provides products to a certain industry.
In conclusion, Merchants, Inc. sent Renita a signed, written confirmation for products she didn't purchase, and Renita is a merchant. Within 10 days, Renita shall provide written confirmation of the agreement.
Read more about Merchants
https://brainly.com/question/15263192
#SPJ1
As a student of business you recognize that the HR director believes that a person holding this postiion would be motivated by:_____.
As a student of business, you recognize that the HR director believes that a person holding this position would be motivated by job enrichment.
Job enrichment is the system of including motivators to current roles which will increase satisfaction and productivity for the worker. this could be done thru increasing autonomy, skill and assignment range, presenting feedback, and so on.
The difference between process enrichment and activity expansion is fine and amount. Task enrichment means improvement, or growth with the help of upgrading and development, while job growth manner to features greater responsibilities and an extended workload.
Task enrichment is a method of motivating personnel in which an activity is designed to have exciting and difficult tasks which could require more skill and can grow pay.
Learn more about job enrichment here: https://brainly.com/question/12288524
#SPJ4
Jason McCurdy has a regular hourly rate of $10.75. During a two week period, he worked 80 hours (40 hours each week) and had deductions of $110 for federal income tax, $53.32 for social security tax, and $12.47 for Medicare tax. His gross pay was
Jason McCurdy's gross pay was $684.21.
Given that the regular hourly rate is $10.75. During a two-week period, he worked 80 hours (40 hours each week) and had deductions of $110 for federal income tax, $53.32 for social security tax, and $12.47 for Medicare tax.
Total working hours = 80 hours
Hourly rate = $10.75
Total payment = $10.75 × 80
= $860
Deductions = Federal Income Tax + Social Security tax + Medicare Tax
= $110 + $53.32 + 12.47
= $175.79
Gross Pay = Total Payment - Deductions
= $860 - $175.79
= $684.21
To know more about the income tax system refer to:
https://brainly.com/question/13745838
#SPJ4
An industry has three firms with unlevered betas of 0.7, 1.1, and 1.6. What is the discount rate to use for an unlevered firm that wants to enter this industry if the risk-free rate is 3 percent and the expected return on the market is 17 percent
18.9%
Finding a company's cost of capital is crucial in corporate finance for a few key reasons. For illustration, a corporation might calculate its net present value using the WACC discount rate. A lower WACC typically denotes a healthy company that can draw investors at a reduced cost. The industry has three firms with un levered betas of 0.7, 1.1, and 1.6. the discount rate to use for a un levered firm that wants to enter this industry is 18.9% if the risk-free rate is 3 percent and the expected return on the market is 17 percent
The WACC discount formula is: WACC = E/V x Ce + D/V x Cd x (1-T)
To learn more about WACC please refer to -https://brainly.com/question/14223809
#SPJ4
What effect will an increase in interest rates have on the quantity of loanable funds supplied?
As interest rates rise, borrowers' costs rise and they become less likely to borrow, according to the borrower's perspective (the source of demand in the loanable funds framework). When a result, as interest rates rise, less money is being demanded.
The borrowing process is described by the market for loanable funds. Savings are the source of the loanable funds available. It is predicated on borrowing that loanable funds are in demand.
The real interest rate and the amount of loans made depend on how the supply of savings and the demand for loans interact. Real GDP includes investment spending as a significant component.
To learn more about costs, click here
https://brainly.com/question/24130824
#SPJ4
If the marginal cost (mc) curve is rising and is above the average fixed cost (afc) curve, then:_______
If the marginal cost (mc) curve is rising and is above the average fixed cost (afc) curve, then the average fixed curve will decline, although the marginal cost curve has nothing to do with this.
The average fixed costs or AFC curve is always downward sloping because of the reason that fixed costs are distributed over a greater volume when the quantity which is produced increases.
AFC is always equal to the vertical difference between ATC and AVC. Why the other cost curves are U-shaped is explained by variable cost to returns.
The marginal cost (MC) curve is explained as the change in total cost divided by the change in the output. Under perfectly competitive markets, the MC curve is the same as the supply curve of any firm.
To know more about marginal cost curve here:
https://brainly.com/question/15570401
#SPJ4
In relationship selling, the buyer and seller invest in opportunities that are blank______.
In relationship selling, the buyer and seller invest in opportunities that are blank mutually beneficial
Relationship selling is a sales strategy that puts more emphasis on the exchanges between the customer and the salesperson than on the cost or specifics of the product.
Enhancing salespeople's interpersonal relationships with their clients and customers is one of the key goals of relationship selling. Customers could experience a lack of personal connection and feel like a number.
Even when the customer doesn't express it directly, relationship selling requires the salesperson to thoroughly comprehend the customer's problems, anxieties, and fears. And as a result, salespeople are able to establish long-lasting relationships with customers and forge emotional ties with them.
To learn more about relationship selling please visit -
https://brainly.com/question/8658975
#SPJ1
A likely analytical procedure to test the accuracy of purchase discounts would be to compute the ratio of cash discounts earned to:
A likely analytical procedure to test the accuracy of purchase discounts would be to compute the ratio of cash discounts earned to : Purchase
What is Purchase Discount?Purchase discount is deducted to the total purchases when computing for the net purchases. This account has a normal balance of credit and decreases the total amount of cost of goods sold.
What is Analytical procedures ?Analytical procedures refer to study of significant ratios and past trends and investigating unusual fluctuations.
Under analytical review procedures, an auditor compares financial information of the current period with those of the previous periods, applying techniques of ratio analysis and investigating the causes of unusual fluctuations and deviations.
Therefore, we can conclude that the correct option is C.
Your question is incomplete, but most probably your full question was:
A likely analytical procedure to test the accuracy of purchase discounts would be to compute the ratio of cash discounts earned to:
a. accounts payable
b. notes payable
c. purchases
d. sales discounts
Learn more about Analytical procedures on:
brainly.com/question/16370850
#SPJ4
A company's organization chart displays, among other relationships, the company's vertical hierarchy of authority. This hierarchy demonstrates
This vertical hierarchy of authority demonstrates the more traditional organizational structure.
With executives at the top, intermediate managers in the centre, and low-level managers and employees at the bottom, vertical hierarchy is commonly used by companies with a high number of people. You and other senior-level executives make all the important decisions in the vertical hierarchy and communicate those decisions to mid-level managers.
These managers create strategies for putting your decisions into action and disseminate these strategies to the low-level managers in charge of monitoring your staff while they perform their daily duties. This vertical hierarchy organizational structure includes a clear chain of command and stringent rules about how your employees can make suggestions that go to the top of your business.
Learn more about vertical hierarchy here:
https://brainly.com/question/13791843
#SPJ1
Motor oil and gasoline are complements. If the price of motor oil increases, consumer surplus in the gasoline market
Motor oil and gasoline are complements. If the price of motor oil increases, consumer surplus in the gasoline market may increase, decrease, or remain unchanged.
In terms of consumption, two things are complementary if they are typically consumed together. The two products that are frequently consumed together by customers are motor oil and gasoline. Similar to replacements, two things might make good or bad complements. The two things are always consumed together, often in some set proportion, if they are ideal complements.
For the majority of consumers, the right and left shoes are an example of the ideal complement. It is challenging to purchase the two items separately because they are frequently consumed together. Again, each buyer must decide for themselves if a product is a substitute, a complement, or unrelated to another.
To learn more about complementary goods here,
https://brainly.com/question/1338465
#SPJ1
Forrest corporation manufactures parts that are used in the production of washers and dryers. the following costs are associated with part no. 65: direct materials $50 direct labor 19 variable manufacturing overhead 22 fixed manufacturing overhead 15 variable selling costs 11 the company received a special-order inquiry from an appliance manufacturer in brazil for 15,000 units of part no. 65. only $3 of fixed manufacturing will be incurred on the order, and the variable selling costs per unit will amount to only $5. since forrest has excess capacity, the minimum price that forrest should charge the brazil manufacturer is:
Since Forrest Corporation has excess capacity, the minimum price that Forrest should charge the brazil manufacturer is $99.
What is the minimum price?The minimum price to charge the Brazilian manufacturer when excess capacity exists is determined by the variable costs incurred by Forrest Corporation and not the total costs.
Data and Calculations:Direct materials $50
Direct labor = $19
Variable manufacturing overhead = $22
Variable selling costs = $5
Fixed cost per unit $3
Total variable costs per unit = $99
Thus, since Forrest Corporation has excess capacity, the minimum price that Forrest should charge the brazil manufacturer is $99.
Learn more about the minimum price to charge at https://brainly.com/question/25491204
#SPJ1
What requires anonymous pacs or ballot measures and independent spending campaigns to disclose their largest contributions?
California disclosure act requires anonymous pacs or ballot measures and independent spending campaigns to disclose their largest contributions.
The California Corporate Disclosure Act was an act written by California Assemblyman Kevin Shelley
It was signed into law by California Governor Jerry Brown. It became effective on 1 January 2003. At the time the law went into effect, all the corporations doing business in California were required to submit certain disclosure statements.
The California Disclosure Act changed the substance and timing to a great extent which was required to be filed with the California Secretary of State for all U.S. as well as foreign market. Corporations that are either incorporated in California or that do business in California are required to comply with the California disclosure act.
To know more about california disclosure act here:
https://brainly.com/question/27852359
#SPJ4
How does the bargain purchase option affect the calculation of the amount to be recovered through periodic rental payments for the lessor?
The bargain purchase option affects the calculation of the amount to be recovered through the increase in periodic rental payments for the lessor.
A bargain purchase option is an option in order to purchase the asset at a price that is expected to be significantly lower than the actual value of the asset at the date that the option becomes exercisable.
If the lessee has the option to buy the asset at the end of the lease life for an amount significantly below fair market value, then that is considered a bargain purchase option and the lessee should record the lease as a finance lease.
Hence, the bargain purchase option affects the calculation of the amount to be recovered by the lessor.
To learn more about bargain purchase here:
https://brainly.com/question/14983914
#SPJ4
When the dollar strengthens the reported consolidated earnings of us based mncs are affected by translation exposure when:_____.
When the dollar strengthens the reported consolidated earnings of us based MNCs are affected by translation exposure when unfavorably, or favorably affected.
Borrow in foreign currency and convert to local currency before revaluation. Economic risk is a type of foreign exchange risk caused by the impact of unexpected currency fluctuations on a company's future cash flows, foreign investments, and earnings.
Since when the dollar is powerful the current of foreign purchased few of U. S dollar and in the case when the dollar is weak the condition is opposite
Therefore at the time of a powerful dollar, the consolidated earning MNC is unfavorably affected and at the time of weakens, it is favorably affected
As the dollar rises (the exchange rate rises), the relative prices of domestic goods and services rise and the relative prices of foreign goods and services fall. 1. Changes in relative prices cause US exports to fall and US imports to rise.
Learn more about consolidated earnings at
https://brainly.com/question/17079943
#SPJ4