Assume That Ariel Agrees to Purchase US$500,000 for C$550,000 on January

question 83

Multiple Choice

Assume that Ariel agrees to purchase US$500,000 for C$550,000 on January 15,2013.The exchange rate at year end is US$1=C$0.95 and the January 15,2013 exchange rate is US$1=C$0.97.What journal entry is required when the contract is initiated?

• A)0
• B)$65,000 loss.
• C)$75,000 gain.
• D)$75,000 loss.

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Definitions:

Psychosocial Stages

Refers to Erik Erikson's theory of human development, which posits that individuals pass through eight stages of psychosocial conflict across the lifespan.

Development of Ego

Refers to the evolution and strengthening of the ego, which involves the individual's sense of self, identity, and their ability to manage impulses and interact with the external world.

Melanie Klein

A psychoanalyst known for her work in child analysis and development of the object relations theory.

Idealizations

The cognitive process of perceiving others, oneself, or situations in an overly positive way, ignoring potential negative aspects.