For Each of the Following,state Whether It Creates a Demand

question 8

Short Answer

For each of the following,state whether it creates a demand for or supply of Canadian dollars:
(a)A Japanese automobile firm builds an assembly plant in Manitoba.
(b)A Canadian importer purchases a shipload of Saudi Arabia oil.
(c)A Canadian student spends a summer in England studying in Oxford.
(d)A French exporter ships products to Argentina using a Canadian freighter.
(e)Currency traders feel that the value of the Canadian dollar will fall in the near future and act on that feeling.

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Definitions:

Salaries Payable

A liability account that records the amounts of wages earned by employees that have not yet been paid to them.

Salaries Expense

An accounting item that represents the total amount paid to employees in the form of salaries over a specific period of time.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Prepaid Insurance

An asset account that represents insurance payments made in advance for future coverage periods.