On December 5, 20X8, Texas based Imperial Corporation purchased goods from a Saudi Arabian firm for 100,000 riyals (SAR), to be paid on January 10, 20X9. The transaction is denominated in Saudi riyals. Imperial's fiscal year ends on December 31, and its reporting currency is the U.S. dollar. The exchange rates are: December 5, 20X81 riyal =$0.265 December 31, 20X81 riyal = 0.262 January 10, 20X91 riyal = 0.264 Based on the preceding information, what journal entry would Imperial make on December 31, 20X8, to revalue foreign currency payable to equivalent U.S. dollar value? A.Accounts Payable (SAR)300 Foreign Currency Transaction Gain 300B.Accounts Payable (SAR)100 Foreign Currency Transaction Gain 100C.Foreign Currency Transaction Loss300 Accounts Payable
(SAR) 300D.Foreign Currency Transaction Loss200 Accounts Payable (SAR) 200
A. Option A
B. Option B
C. Option C
D. Option D
Answer: A
You might also like to view...
Research on first impressions has shown
a. once a first impression has been made, it is nearly impossible to change. b. once a first impression has been made, twice as much information is needed to reverse it. c. first impressions are formed in the first 30 seconds of meeting someone. d. a lasting first impression is more important than the interview itself.
Monroe’s Motivated Sequence is
a. an organizational pattern often used to persuade. b. a small group decision-making method. c. an organizational pattern often used to inform. d. an individual decision-making method.
When team members have to travel to attend meetings, ______ meetings are needed.
a. fewer, longer b. fewer, shorter c. more frequent, shorter d. more frequent, longer
Which of the following would not be found in a Schedule of Noncash Investing and Financing Activities, reported at the end of a Statement of Cash Flows?
A) stock dividends declared B) bonds payable exchanged for capital stock C) purchase of treasury stock D) capital stock issued to acquire fixed assets