Duffy Corp

question 56

Multiple Choice

Duffy Corp.has provided a part of its budget for the second quarter: The cash balance on April 1 is $14,000.Assume that there will be no financing transactions or costs during the quarter.Calculate the projected cash balance at the end of April.

• A) $95,800
• B) $54,000
• C) $37,300
• D) $65,300

Identify and record foreign exchange gains or losses at both the year-end and settlement dates.

Analyze the causes of fluctuation in foreign exchange rates.

Understand the impact of foreign exchange on the recording of sales and purchases in financial statements.

Understand the accounting treatment for monetary items in foreign currencies at the end of reporting periods.

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Definitions:

Simple Interest

Interest that is determined just on the original amount, or on the remaining unpaid portion of that amount.

Government of Alberta

The provincial government responsible for public policy, regulation, and administration in the province of Alberta, Canada.

Treasury Bill

Short-term government securities issued at a discount from the face value and paying no interest, maturing usually in one year or less.

Issue Price

The price at which new securities are offered to the public by the issuer.