Related to making the connection] according to an article in the wall street journal, open double quotethe highest u. s. dollar denomination, the $100 bill, trades at a significant premium in many emerging marketsclose double quote. source: mike bird, open double quotethe death of the euro500 note could boost its black market price, close double quote wall street journal, may 6, 2016. which of the following best explains why a resident of venezuela would wish to use u. s. currencies rather than currencies issued by their government? a. to better maintain their purchasing power. b. the u. s. dollar is the official currency of venezuela. c. to evade taxes. d. because they are engaging in illicit activities. why might the demand for u. s. $100 bills in emerging markets be greater than the demand for lower-denomination u. s. bills? a. prices in emerging markets are much higher than in the united states. b. large-denomination bills allow substantial transactions to be carried out in cash. c. people use large-denomination bills in their day-to-day lives. d. smaller-denomination bills facilitate illicit activities.

For each of the following situations, indicate whether you agree or disagree with the financial reporting practice employed and state the basic assumption, component, or accounting principle that is applied (if you agree) or violated (if you disagree).wagner corporation adjusted the valuation of all assets and liabilities to reflect changes in the purchasing power of the dollar.spooner oil company changed its method of accounting for oil and gas exploration costs from successful efforts to full cost. no mention of the change was included in the financial statements. the change had a material effect on spooner's financial statements.cypress manufacturing company purchased machinery having a five-year life. the cost of the machinery is being expensed over the life of the machinery.rudeen corporation purchased equipment for $180,000 at a liquidation sale of a competitor. because the equipment was worth $230,000, rudeen valued the equipment in its subsequent balance sheet at $230,000.davis bicycle company received a large order for the sale of 1,000 bicycles at $100 each. the customer paid davis the entire amount of $100,000 on march 15. however, davis did not record any revenue until april 17, the date the bicycles were delivered to the customer.gigantic corporation purchased two small calculators at a cost of $32.00. the cost of the calculators was expensed even though they had a three-year estimated useful life.esquire company provides financial statements to external users every three years.