1. A U. S. company borrows €100,000 by issuing bonds to German investors when the spot rate is $1.25/€. The interest rate is 3 percent per annum. Which of the following is false concerning the U. S. company's accounting for this loan? A. If the spot rate falls to $1.23 one year later, the company will report the bonds payable at $123,000. B. If the euro weakens against the U. S. dollar there will be an exchange loss on the bonds payable. C. If the spot rate falls to $1.20/€ one year later, when the interest payment is accrued, the interest expense will be recorded at $3,600. D. The company can hedge these bonds by entering a forward purchase contract for euros.

Lincoln company has an accounting policy for internal reporting purposes whereby the costs of any research and development projects that are over 70 percent likely to succeed are capitalized and then depreciated over a five-year period with a full year of depreciation in the year of capitalization. in the current year, $400,000 was spent on project one, and it was 55 percent likely to succeed, $600,000 was spent on project two, and it was 65 percent likely to succeed, and $900,000 was spent on project three, and it was 75 percent likely to succeed. in converting the internal financial statements to external financial statements, by how much will net income for the current year have to be reduced? a. $180,000b. $380,000c. $720,000d. $900,000

Based on the supply and demand theory, why do medical doctors earn higher wages than child-care workers?

An important application of regression analysis in accounting is in the estimation of cost. by collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. consider the following sample of production volumes and total cost data for a manufacturing operation. production volume (units) total cost ($) 400 4000 450 5000 550 5400 600 5900 700 6400 750 7000 compute b 1 and b 0 (to 2 decimals if necessary). b 1 b 0 complete the estimated regression equation (to 2 decimals if necessary). = + x what is the variable cost per unit produced (to 1 decimal)? $ compute the coefficient of determination (to 4 decimals). note: report r 2 between 0 and 1. r 2 = what percentage of the variation in total cost can be explained by the production volume (to 2 decimals)? % the company's production schedule shows 500 units must be produced next month. what is the estimated total cost for this operation (to 2 decimals)? $