RXN's Year-End Is on December 31

question 22

Multiple Choice

RXN's year-end is on December 31. On November 1, 2014 when the U.S. dollar was worth $1.165 CDN, RXN sold merchandise to an American client for $300,000. Full payment of this invoice was expected by March 1, 2015. On December 1, the spot rate was $1.1450 CDN and the three-month forward rate was $1.1250 CDN. In order to minimize its Foreign Exchange risk and exposure, RXN entered into a contract with its bank on December 1, 2014 to deliver $300,000 U.S. in three months' time. The spot rate at year-end was $1.16 CDN and the forward rate from December 31, 2014 to March 1, 2015 was $1.14 CDN. On March 1, 2015, RXN received the $300,000 U.S. from its client and settled its contract with the bank. The forward contract was to be accounted for as a fair value hedge of the US dollar receivable. Significant dates and exchange rates pertaining to this transaction are as follows: Assuming that the accounts receivable balance was not adjusted on December 1, 2014, what adjustment (if any) would be required to RXN's year-end accounts receivable balance?

• A) A $3,000 decrease.
• B) A $1,500 decrease.
• C) No adjustment is required.
• D) A $3,000 increase.

Describe relationship mobility in collectivistic cultures with examples of marriage and divorce.

Define power distance and its relevance in cultural studies.

Evaluate the role of geography in cross-cultural differences.

Illustrate how cultural products reflect cross-cultural differences.

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Definitions:

Compromise Policy

A compromise policy is a policy that is agreed upon through concessions from all parties involved, aiming for a middle ground solution.

Debt/Equity Ratio

Debt/Equity Ratio is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

Compromise Policy

A strategy or approach that involves making concessions or finding a middle ground between different opinions or objectives in decision-making processes.

Cash Dividend

A distribution of a company's earnings to shareholders in the form of cash, indicating the company's underlying profitability and cash flow health.