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DQuestion 9 1 pts How do we allocate statistical discrepancy among the current,

ID: 1112686 • Letter: D

Question

DQuestion 9 1 pts How do we allocate statistical discrepancy among the current, capital, and financial accounts? O Divide it evenly amongst the three accounts O Depend on the degree of certainty by which we attribute to these accounts. O Depend on the convention adopted by the specific financial institution. O We have no way of knowing exactly how to allocate this discrepancy. O Statistical discrepancy signals human errors made when dealing with financial accounts. DQuestion 10 1 pts How many dollars would it cost to buy an Edinburgh Woolen Mill sweater costing 50 British pounds if the exchange rate is 1.25 dollars per one British pound? O 70 dollars O 40 British pounds 50 dollars 60 dollars 62.5 dollars DQuestion 11 1 pts What is the exchange rate between the dollar and the British pound if a pair of American jeans costs 50 dollars in New York and 100 Pounds in London? 2.5 dollars per British pound 0.5 dollars per British pound 3.5 dollars per British pound O 2 dollars per British pound O 1.5 dollars per British pound

Explanation / Answer

Q9

Statistical discrepency cannpt be added or placed according to our will because it is the difference in the balance on the two accounts and is generated on its own due to errors in data gathering. Hence we cannot do this on our own because we have no way of knowing exactly how to allocate this discrepancy

Q10.

Exchange rate is 1.25 dollar per BP. Cost of the consumption basket is 50 BP. This implies we have to spend 1.25 x 50 = 62.5 dollars to buy the basket using dollars. Correct choice is 62.5 dollars

Q11

When a product costs 50 dollars in one area and 100 BP in another then implied exchange rate is 0.5 dollar per BP or 2 BP per dollar. Correct option is 0.5 dollars per BP