Note: This Is a Kaplan CPA Review Question

question 26

Multiple Choice

Note: This is a Kaplan CPA Review Question
Sphinx Co. (Sphinx) records its transactions in U.S. dollars. A sale of goods resulted in a receivable denominated in Japanese yen, and a purchase of goods resulted in a payable denominated in Euros. Sphinx recorded a foreign exchange transaction gain on collection of the receivable and an exchange transaction loss on the settlement of the payable. The exchange rates are expressed as so many units of foreign currency to one dollar. Did the number of foreign currency units exchangeable for a dollar increase or decrease between the contract and settlement dates?

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Control Charts

Tools used in quality control to monitor, control, and improve process performance over time by charting the values of a statistical measure and comparing them to predetermined limits.

P Chart

A type of control chart used for monitoring the proportion of defective items in a process over time.

Control Charts

Graphical tools used to determine if a manufacturing or business process is in a state of statistical control.

Sample Proportion

The ratio or fraction of sample observations that belong to a certain category or that exhibit a particular attribute or characteristic.