Northland Corporation Recorded £1,000,000 in Accounts Receivable for Sales to Customers

question 58

Multiple Choice

Northland Corporation recorded £1,000,000 in Accounts Receivable for sales to customers in the United Kingdom and recorded Accounts Payable of 2,000,000 Yuan for product purchased from China. If Northland recorded a foreign currency exchange loss on its receivables and a foreign currency gain on its payables, what must have happened to each currency?

• A) Yuan appreciated, Pound depreciated
• B) Yuan depreciated, Pound appreciated
• C) Yuan appreciated, Pound appreciated
• D) Yuan depreciated, Pound depreciated

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Definitions:

Spending Variance

The difference between the actual amount of money spent and the budgeted or expected amount, indicating over- or under-spending.

Client-Visits

Refers to the number of times clients or customers visit a business or receive services from a business within a specific time period.

Medical Supplies

Products and equipment used in healthcare settings, including items for patient care, diagnostic tests, and surgical procedures.

Spending Variance

A financial metric that compares the actual amount spent to the budgeted or planned amount in a certain period.