On November 12,Higgins,Inc

question 27

Multiple Choice

On November 12,Higgins,Inc. ,a U.S.Company,sold merchandise on credit to Kagomeof Japan at a price of 1,500,000 yen.The exchange rate was $0.00837 per yen on the date of sale.On December 31,when Higgins prepared its financial statements,the exchange rate was $0.00843.Kagomepaid in full on January 12,when the exchange rate was $0.00861.On December 31,Higgins should prepare the following journal entry:

• A)Debit Sales $90;credit Foreign Exchange Gain $90.
• B)Debit Foreign Exchange Loss $90;credit Sales $90.
• C)Debit Accounts Receivable-Kagome $90;credit Foreign Exchange Gain $90.
• D)Debit Foreign Exchange Loss $90;Accounts Receivable-Kagome $90.
• E)No journal entry is required until the amount is collecteD.

Analyze the conditions under which monopolists maximize their profits.

Grasp the implications of regulatory practices on monopolies, including the concepts of allocative efficiency and fair return.

Identify the different outcomes of price discrimination for monopolists versus consumers.

Recognize the economic and operational characteristics of natural monopolies.

---

Definitions:

Involuntary

Occurring without a person's consent or against their will, often referring to actions or processes not chosen by an individual or group.

For Deposit Only

An endorsement on a check indicating that it can only be deposited into an account, not cashed.

Converted

In legal and financial contexts, this refers to the change of one form of property or asset to another, such as converting bonds to stocks or a commercial building to residential use.

Indorser

A person who signs their name on a financial document, thereby transferring their rights in the document to another party.