Note: This Is a Kaplan CPA Review Question

question 45

Multiple Choice

Note: This is a Kaplan CPA Review Question
On September 22, 20X1, Yumi Corp. purchased merchandise from an unaffiliated foreign company for 10,000 units of the foreign company's local currency. On that date, the spot rate was $.55. Yumi paid the bill in full, six months later, on March 20, 20X2, when the spot rate was $.65. The spot rate was $.70 on December 31, 20X1. What amount should Yumi report as a foreign currency transaction loss in its income statement for the year ended December 31, 20X1?

• A) $500
• B) $0
• C) $1,500
• D) $1,000

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Definitions:

Unbiased Perception

The ability to perceive information and situations without allowing personal feelings, prejudices, or interpretations to influence judgment.

Self-actualizers

Individuals who have fulfilled their potential or are in the process of doing so, often characterized by high levels of creativity, autonomy, and a deeper understanding of reality.

Maslow

Refers to Abraham Maslow, a psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.

Self-actualizers' Imperfections

The acknowledgment that individuals striving for self-actualization can possess flaws and limitations despite their pursuit of personal growth.