Free

Account Adjustments and Cash Flows - Assignment Example

Add to wishlist

Summary

As the author of the paper "Account Adjustments and Cash Flows" tells, a balance of payments reflects whether a country has enough in savings to pay for its imports. It also shows whether the country can pay for its growth by producing enough output. (Debelle, 17)…

Download full paper File format: .doc, available for editing

GRAB THE BEST PAPER96.3% of users find it useful

Read Text Preview

Subject: Macro & Microeconomics
Type: Assignment
Level: High School
Pages: 1 (250 words)
Downloads: 2
Author: christy01

Extract of sample "Account Adjustments and Cash Flows"

A dollar can be strong or it can be weak. A strong dollar helps the export sector of countries around the world. A strong dollar is good when inflation is not a problem. Conversely, a weaker currency increases the purchasing power of the Americans. A strong dollar is a disadvantage to the policymakers. However, the US benefits from a strong dollar because it does not depend on exports. The countries whose economies are not strong as compared to the US lose when the dollar becomes strong. This means that their currency is losing value.

In conclusion, a floating exchange rate is the exchange rate where the currency is set by the forces of demand and supply. These forces are in the foreign exchange market. The floating exchange rate changes freely and is determined in the forex market. There is a managed float currency exchange system. This system unlike the latter is subject to interventions by the monetary authorities. It is not dependent on the forces of demand and supply. The government may have set objectives that it wants to achieve and it interferes with the forces of demand and supply in the managed float currency exchange system. (Devereux, 48)

Cite this document

APA
MLA
CHICAGO

(“Assignment Example | Topics and Well Written Essays - 250 words - 243”, n.d.)
Assignment Example | Topics and Well Written Essays - 250 words - 243. Retrieved from https://studentshare.org/macro-microeconomics/1648051-assignment

(Assignment Example | Topics and Well Written Essays - 250 Words - 243)
Assignment Example | Topics and Well Written Essays - 250 Words - 243. https://studentshare.org/macro-microeconomics/1648051-assignment.

“Assignment Example | Topics and Well Written Essays - 250 Words - 243”, n.d. https://studentshare.org/macro-microeconomics/1648051-assignment.

Cited: 0 times

CHECK THESE SAMPLES OF Account Adjustments and Cash Flows

The Neo-Classical Model of Robert Solow

A country's transactions with the rest of the world, including both trade flows and financial flows, are summarized by a set of accounts called the balance of payments.... A country's transactions with the rest of the world, including both trade flows and financial flows, are summarized by a set of accounts called the balance of payments.... The main objective of these structural adjustments is to introduce economic reforms in the countries facing the balance of payments crisis....

4 Pages (1000 words) Essay

Creating Shareholder Value

And, the value creation of a company is reflected in its ability to secure and increase its long-term cash flow.... From a short-term perspective, the sub-prime lending seemed extremely attractive for creating value and seeing the stock prices skyrocket but it was probably not the best decision from a long-term cash flow perspective....

7 Pages (1750 words) Term Paper

A Financial Plan Based on Management's Strategic Intent

Annual Budget cash flow Statement 5.... Variance analysis, a comparison of the plan with actual performance, helps a manager analyze firm performance during the budget period, gauge strengths and weaknesses, and make interim adjustments to the plan.... With the income and financial statements at their disposal, the managers will make strategic decisions that will be founded on fact since Proforma balance sheets are created by forecasting the individual account balances at a future date and then aggregating them into a financial statement format....

5 Pages (1250 words) Term Paper

Company Closing Process

The final figure got, reflect the actual cash balance on the bank account as opposed to the opening balance figure.... Prepaid expenses refer to cash paid by the business in advance understanding that specific tasks will be performed in its favor in the future, whereas unearned revenue refers to the cash money the company accepted promising to provide services or goods at a future date.... Basically there are three procedures completed under month-end process: adjustments, calculations and reporting....

4 Pages (1000 words) Essay

Cash Flow Statement and Analysis

The cash flows from operating activities are showing a negative $ 5,000 which shows that the company has invested heavily in its working capital and also paying off its major liabilities.... This assignment "cash Flow Statement and Analysis" discusses both modes of financing i.... The cash flow statement starts with the net income taken from the income statement of the company.... From the net income, non-cash adjustments have been made such as depreciation and loss recorded on the sale of the fixed assets....

5 Pages (1250 words) Assignment

Radioshacks Main Source of Cash

DB 7 Question 1: Main source of cash, main use of cash, and implications on stakeholders RadioShack's main source of cash and implication on stakeholders The main source of cash for the organization is operating activities that generated the highest cash inflow, $ 155 million, as compared to cash flow from investing activities that was - $ 80 million and cash flow from investing activities that was - $ 413.... hellip; Net income is the major contributor to the high cash flow from operating activities followed by depreciation and amortization....

4 Pages (1000 words) Research Paper

Cash Flow Statement

hellip; The author states that cash flows exclude movements between the items that constitute cash or cash equivalent because these are part of the cash management of an enterprise rather than part of its operating investing and financing activities.... The statement of cash flow gives an indication about the relationship between profitability and cash-generating ability and thus the quality of profit earned.... Thus under the indirect method adjustments are made to net profit whereas under the direct method individual items of revenue and expenses are adjusted to calculate cash receipts and cash payments....

1 Pages (250 words) Essay

Why are adjusting entries necessary

The procedure for making these adjustments and entries must be complete and consistent at the end of each accounting period (Lypko, 2013).... Therefore the accountants must ensure that they make these adjustments by analyzing thoroughly the accounts and determine which account requires adjustment.... These adjusting journal entries are prepared typically in advance before the company issues the financial… These adjusting entries may involve balance sheet account that may take care of the assets, liabilities and capital and the income statement account that involves consideration of expenses and revenues....

4 Pages (1000 words) Essay