Assume That Signh Agrees to Purchase US$100,000 for C$84,745 on January

question 58

Multiple Choice

Assume that Signh agrees to purchase US$100,000 for C$84,745 on January 15,2013.The exchange rate at year end is US$1 = C$1.20 and the January 15,2013 exchange rate is US$1 = C$1.19.What journal entry is required at January 15,2013?

• A)$701 loss.
• B)$701 gain.
• C)$711 loss.
• D)$711 gain.

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Definitions:

Percentage Calculation

The mathematical process of determining the percentage amount or rate of something.

Percentage Calculation

The process of determining the relative amount of something as a percentage, which involves multiplication by 100 and adding a percent sign.

Percentage Calculation

The mathematical process of finding a portion of a number relative to 100, often used to compare sizes of different quantities.

Graduated Commission

A graduated commission is a compensation structure where the rate of commission increases with the volume of sales achieved, incentivizing higher performance.