On January 1st, 2014 ABC Inc

question 37

Multiple Choice

On January 1st, 2014 ABC Inc.had invoiced a client in New York for $10,000 US for services rendered that day.ABC did not hedge this receivable.The receivable is due in 60 days.On January 1st, 2014, the spot rate was $1US = $1.02CDN.On January 31st, 2014, the spot rate was $1US = $1.05CDN.What is the effect of the above information on ABC's January financial statements?

• A)A $300 debit to OCI.
• B)A $300 foreign exchange loss.
• C)A $300 credit to OCI.
• D)A $300 foreign exchange gain.

Understand the influence of tax rates on economic behavior.

Identify the types of taxes levied in the United States.

Understand the concept of taxable income and how deductions and exemptions affect it.

Recognize various examples of tax types (progressive, regressive, proportional) and their implications on income.

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Definitions:

Tens

A unit of pressure or stress, oftentimes used in the context of physical sciences, but this definition is incorrect. NO.

Meaning

The significance or purpose of something; what is intended to be expressed or indicated.

Tia

Transient Ischemic Attack, a temporary period of symptoms similar to those of a stroke, lasting only a few minutes and causing no permanent damage.

Meaning

The significance or interpretation of a word, phrase, sentence, or sign.