Assume That You Are the Manager of a U

question 53

Multiple Choice

Assume that you are the manager of a U.S.company and you face an exchange rate of ¥120 per $1.Whenever you receive an order,rather than ship from your production facilities,you call in the order to a Japanese company and have the bill shipped to you directly.If the bill shipped to you is ¥7,500 and you can collect $62 per item sold to your customer,what would be your loss per item if you pay the Japanese company ¥7,500?

• A)-$0.50 per item
• B)-$0.60 per item
• C)-$0.75 per item
• D)-$0.80 per item

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Definitions:

Adjusted Cash Balance

The cash balance reported on a company's financial statements, modified for checks that have not yet cleared or deposits in transit.

Outstanding Checks

Checks that have been written and recorded in a ledger but have not yet been cashed or cleared by the bank.

Outstanding Deposit

Funds that have been deposited but not yet credited to the depositor's account.

Check Register

A record maintained by the account holder of checks written, deposits made, and current balance, used for managing a checking account.