Alpha, Inc

question 46

Multiple Choice

Alpha, Inc., a U.S. company, had a receivable from a customer that was denominated in Mexican pesos. On December 31, 2020, this receivable for 75,000 pesos was correctly included in Alpha's balance sheet at $8,000. The receivable was collected on March 2, 2021, when the U.S. equivalent was $6,900. How much foreign exchange gain or loss will Alpha record on the income statement for the year ended December 31, 2021?

• A) $1,100 loss.
• B) $1,100 gain.
• C) $6,900 loss.
• D) $6,900 gain.
• E) $8,000 gain.

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Definitions:

Edward Thorndike

An American psychologist known for his work on the theory of learning based on the idea of connectionism, and for his contribution to educational psychology.

John Watson

An American psychologist who established the psychological school of behaviorism, emphasizing the study of observable behavior over the study of the mind.

Alfred Bandura

A psychologist known for his work on social cognitive theory and the concept of self-efficacy, as well as his study on observational learning demonstrated through the Bobo doll experiment.

Positive Punishment

Adding an unfavorable outcome or event following an undesired behavior to decrease the likelihood of that behavior occurring again.