Mint Corporation has several transactions with foreign entities. Each transaction is denominated in the local currency unit of the country in which the foreign entity is located. On November 2, 20X8, Mint sold confectionary items to a foreign company at a price of LCU 23,000 when the direct exchange rate was 1 LCU = $1.08. The account has not been settled as of December 31, 20X8, when the exchange rate has increased to 1 LCU = $1.10. The foreign exchange gain or loss on Mint's records at year-end for this transaction will be:
A. $387 gain
B. $387 loss
C. $460 loss
D. $460 gain
Answer: D
You might also like to view...
______ job design focuses on designing jobs with tasks that remain within the worker’s normal mental capabilities and limitations.
A. Perceptual-motor B. Biological C. Organic D. Mechanistic
Define and describe channel length and breadth
What will be an ideal response?
Which step of the organizational development model is where specialists must observe the effects of the intervention after it has been implemented in order to gauge its effectiveness?
a. Intervention b. Determination c. Progress monitoring d. Diagnosis
What would be characterized as real-time information?
A. daily production line details B. census data over the last ten years C. literature reviews by a particular research study D. the number of cars sold by a manufacturer since January E. the price of a specific brand of chocolate