ABC Ltd is listed on the Imaginary Stock Exchange. Its reporting currency is Imaginary Dollars (I$). ABC Ltd has been experiencing some financial troubles lately. However, management believes that this is a temporary phase, and that it will soon return to normal times. Cash flow has been declining for the past two years, and ABC Ltd has been consistently falling behind on contractual payments to suppliers for raw materials. Consequently, the suppliers have sued ABC Ltd over unpaid bills. The court is expected to rule in favour of the suppliers, and ABC Ltd would be liable to pay I$40 million in fines. The management of ABC Ltd argue that there is a low probability of such a ruling, and have not recognised this liability in the books. Assume that the tax rate is 30%.By how much would you adjust net income?

ABC company is concerned about its exposure to USD movements and has determined the risk to be beyond their risk appetite. ABC company presently owe suppliers USD 100,000. Their customers owe USD 30,000. The most appropriate risk treatment is?Group of answer choicesAccept the riskPurchase a USD 100,000 forward exchange contact .Purchase a USD 30,000 forward exchange contact .Purchase a USD 70,000 forward exchange contact .

ABC Company maintains control accounts for Accounts Receivable and Accounts Payable, along with subsidiary ledgers for each. The following transactions occurred during the month of April: 1. April 1: Sold goods to XYZ Ltd on credit for K5,000. 2. April 5: Purchased inventory from DEF Inc. on credit for K3,000. 3. April 10: Received payment of K4,800 from XYZ Ltd. 4. April 15: Paid DEF Inc. K2,500 for the inventory purchased. 5. April 20: Sold goods to LMN Corp. on credit for K7,000. 6. April 25: Received payment of K6,500 from LMN Corp. 7. April 30: Issued a credit note of K200 to XYZ Ltd for returned goods. Prepare the Debtors Control and Creditors Control Accounts and update their respective subsidiary ledgers.

In early January 2023, ABC Company applied for a patent and incurred legal costs of ₱49,000. In January 2024, ABC Company incurred ₱19,000 worth of legal fees in a successful defense of its patent. The company amortizes the patent over 7 years.Compute for the 2023 amortization.

ABC International Ltd. and XYZ Pvt. Ltd. have a dispute over the production process which involved intricate trade secrets. The most suited alternative dispute resolution mechanism that can protect the trade secrets while resolving the dispute is:

Question 2: Case study (2.0 marks) L/C: T12345HBI dated 28th April, 2021 Amount: USD215,863.75 L/C at sight Advising Bank: OCBC Shanghai Beneficiary: Champland Steel Co., Ltd - HongKong Applicant: Phuc Anh Co., Ltd Issuing bank: ABC bank, Vietnam After examining the presented documents, ABC bank advised the applicant about the compliance of documents and then Phuc Anh Co. agreed to pay and receive the documents for taking delivery. ABC bank debited Phuc Anh's account and transferred money to the beneciary on Friday 11th June 2021. 2/3 In the morning of 12nd July, 2021, Phuc Anh completed the imported customs clearance and trucked the container to their warehouse, but when the container went through the scaling machine, the machine showed that the weight of the container was very light, not same as the nature of the ordered goods. Phuc Anh immediately advised the ABC bank to hold the payment, but it was impossible because the transferring order went out. According to ABC bank's recommendation, Phuc Anh asked SGS VN to survey the container while unpacking this container, and the survey report showed that the goods shipped in container were not ones ordered by Phuc Anh. a. Who bears the above risk? Why? (0.5 marks) b. Please suggest solutions to protect Applicant's benefit in future. (0.5 marks) c. Another shipment (2 containers) which is also paid by at sight L/C sent by Champland will arrive HaiPhong Port in 2 more days, ABC bank is about to examine the documents. In position of ABC bank, what would you do to protect the importer's benefit? (1.0 mark)