At the End of the Fiscal Year, Apha Airlines Has

question 46

Multiple Choice

At the end of the fiscal year, Apha Airlines has an outstanding purchase commitment for the purchase of 1 million gallons of jet fuel at a price of €4.60 per gallon for delivery during the coming summer. The company prices its inventory at the LCNRV. If the market price for jet fuel at the end of the year is €4.25, how would this situation be reflected in the annual financial statements?

• A) Record unrealized gains of €350,000 and disclose the existence of the purchase commitment.
• B) No impact.
• C) Record unrealized losses of €350,000 and disclose the existence of the purchase commitment.
• D) Disclose the existence of the purchase commitment.

---

Definitions:

Equality Rights

Basic rights enumerated in the Canadian Charter of Rights and Freedoms, including the right not to be discriminated against on the basis of grounds such as gender, age, religion, race, or colour, and the guarantee of equal benefit of and protection by the law.

Charter Of Rights And Freedoms

The legal document that guarantees fundamental freedoms, legal rights, and equality rights for all citizens in Canada, acting as a cornerstone for democracy in the country.

Charter Rights

Rights and freedoms that are guaranteed under a country's constitution or charter, protecting individuals from infringement by governments.

Refused Service

The act of denying a customer goods or services, which can be legal or illegal depending on the circumstances and nondiscrimination laws.