A U.S. company buys merchandise from a foreign company denominated in the foreign currency. Which of the following statements is true?
A. No foreign exchange gain or loss will result.
B. Any gain or loss will be included in comprehensive income.
C. If the foreign currency appreciates, a foreign exchange gain will result.
D. If the foreign currency appreciates, a foreign exchange loss will result.
E. If the foreign currency depreciates, a foreign exchange loss will result.
Answer: D
You might also like to view...
After Mary's Gifts and Cards surveyed its customers, it discovered that its customers preferred the company's competition more than 70 percent of the time. The most frequently cited reason was customer service. During which stage of Lewin's change model should Mary provide her employees with this information about the problems with customer service?
A. stabilizing B. continuous improvement C. unfreezing D. changing E. refreezing
Carla and Eliza share income equally. For the current year, the partnership net income is $40,000 . Carla made withdrawals of $12,000 and Eliza made withdrawals of $21,000 . At the beginning of the year, the capital account balances were: Carla capital, $42,000? Eliza capital, $55,000 . Eliza's capital account balance at the end of the year is
a. $34,000 b. $54,000 c. $78,000 d. $75,000
The Refining Department of SweetBeet, Inc. had 79,000 tons of sugar to account for in July. Of the 79,000 tons, 49,000 tons were completed and transferred to the Boiling Department, and the remaining 30,000 tons were 50% complete. The materials required for production are added at the beginning of the process. Conversion costs are added evenly throughout the refining process. The weighted-average method is used. Calculate the total equivalent units of production for direct materials.
A) 64,000 units B) 49,000 units C) 15,000 units D) 79,000 units
Which of the following is a criticism of authentic leadership?
A. Authentic leadership implies that leaders are motivated by justice and community. B. Authentic leadership provides broad guidelines for individuals who want to become authentic leaders. C. Everyone can develop authenticity and learn to be more authentic. D. The concepts presented in the practical approaches are not fully substantiated.