A US-Based Company Purchases Merchandise on Account from a Company in in Mexico

question 90

Multiple Choice

A U.S.-based company purchases merchandise on account from a company in Mexico. The purchase contract is denominated in pesos. If the peso decreases in value relative to the dollar, the purchaser will record a ________. The peso ________ relative to the dollar.

• A)Foreign Currency Transaction Loss; weakens
• B)Foreign Currency Transaction Loss; strengthens
• C)Foreign Currency Transaction Gain; weakens
• D)Foreign Currency Transaction Gain; strengthens

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Definitions:

Vertical Gene Transfer

The transmission of genetic information from parent to offspring through sexual or asexual reproduction.

Conjugal Gene Transfer

A process in bacteria where genetic material is transferred between bacterial cells through direct contact.

Binary Fission

A method of asexual reproduction seen in prokaryotic organisms and some single-celled eukaryotes, where a cell divides into two genetically identical daughter cells.

Conjugation

(1) A sexual process in ciliate protists that involves exchange of haploid nuclei with another cell. (2) A mechanism for DNA exchange in bacteria that involves cell-to-cell contact.