Excel Sources Inc

question 56

Multiple Choice

Excel Sources Inc. is a U.S. incorporated company. Due to change in exchange rate, it receives $150,000 as payment against a sale of $165,000. Under the two-transaction perspective:

• A) no journal entry will be prepared on the date of sale.
• B) the sale will be recorded at $150,000 on the date of sale.
• C) foreign exchange loss will be recorded for $15,000.
• D) Accounts Receivable will be debited for $15,000 on the date of payment.

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Definitions:

Estimating Value

The process of determining an item's worth or the fair market value of assets, often used in finance and real estate.

Inventory

The total amount of goods and materials held by a business for the purpose of resale, manufacturing, or repair.