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Explain some Examples under FASB 52 that a foreign entity's functional currency would be similar as the parent firm's currency.
Answer: Three instances under FASB 52, in which the foreign entity's functional currency will be similar as the parent firm's currency, are:
a) The foreign entity's cash flows directly influence the parent's cash flows and are readily available for remittance to the parent firm;
b) The sales prices for the foreign entity's products are approachable on a short-term basis to exchange rate changes in which sales prices are defined through worldwide competition; and,
c) The sales market is mainly located in the parent's country or sales contracts are denominated in the parent's currency.
What reasons do governments frequently give to justify the decision to not permit price to ration goods? (a) Price gouging is bad. (b) Income is unfairly distributed. (c) Some
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Norfolk Ltd is specialized in producing & selling air conditions. In 2010, the manufacturing cost per unit included:
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1. How would you judge the potential profit of Bajaj Electronics on the first year of sales to Booth Plastics and give your views to increase the profit?
how to calculate cashflow statements
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