The higher the probability that the return on an investment will not pay off its averaged promised value, the higher the expected return must be to induce an investor to invest in it

If a foreign exchange transaction calls for payment in the importer's currency, the exporter has the foreign exchange risk

Indicate whether the statement is true or false.

Use the following balance sheet equation format to show the effect of the following transactions. Write the account names that will be used for each transaction

Account name Total assets Total liabilities Paid-in capital Retained Earnings 1. The owners invest $42,000 in the company. 2. The company purchases equipment costing $6,000, paying $2,000 with the remainder as a note payable. 3. The company acquires inventory costing $2,500, paying $1,500 with the remainder on account. 4. Depreciation on the equipment was $200.