Assume That Aero Agrees to Purchase US$50,000 for C$52,000 on January

question 87

Multiple Choice

Assume that Aero agrees to purchase US$50,000 for C$52,000 on January 15,2013.The exchange rate at year end is US$1 = C$0.98 and the January 15,2013 exchange rate is US$1 = C$0.97.What journal entry is required at year end?

• A)$3,000 loss.
• B)$3,000 gain.
• C)$3,500 loss.
• D)$3,500 gain.

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Definitions:

Afford to Leave

The financial capacity or personal situation that allows an individual to exit a job, relationship, or situation without facing significant hardship.

Employee Tendency

The general patterns or propensities of behavior and attitudes exhibited by employees in the workplace.

Normative Commitment

An individual's sense of obligation to stay with an organization due to shared values or beliefs.

Perceived Obligation

The belief or feeling that one is duty-bound to perform certain actions.