Schrute Inc

question 73

Multiple Choice

Schrute Inc. had a receivable from a foreign customer that is due in the local currency of the customer (stickles) . On December 31, 2021, this receivable for §200,000 was correctly included in Schrute's balance sheet at $167,000. When the receivable was collected on February 15, 2022, the U.S. dollar equivalent was $181,000. In Schrute's 2022 consolidated income statement, how much should have been reported as a foreign exchange gain?

• A) $0.
• B) $7,000.
• C) $19,000.
• D) $33,000.
• E) $14,000.

Identify the legal effects of contract delegation and assignment on the parties involved.

Comprehend the legal requirements and effects of transferring rights or duties under a contract.

Recognize the legal consequences of not adhering to the contractual terms regarding assignments and notices.

Understand the remedies available under contract law, including equitable remedies.

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Definitions:

Cost of Goods Sold

This measure reflects the total costs involved in manufacturing or purchasing products that a company sells during a period, impacting gross profit and business strategy planning.

Applied Overhead

The amount of factory overhead costs allocated to individual units of production, based on a predetermined rate.

Actual Overhead

The real expenses incurred during a period for indirect costs, differing from budgeted or estimated overhead.

Schedule of Cost

A detailed report or document that itemizes and categorizes the various costs associated with a project or production, often used for budgeting and financial analysis.