How Should We Recognize the Difference Between the Value of a Receivable

question 41

Multiple Choice

How should we recognize the difference between the value of a receivable in a foreign currency at the time it was recorded and the time the cash was received?

• A)As an adjustment to stockholders' equity
• B)As an adjustment to sales revenue
• C)As an extraordinary gain or loss
• D)As a prior period adjustment

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Definitions:

Union Labor

Union Labor refers to labor or workforce that is represented by a labor union, which negotiates wages, working conditions, and other employment terms on their behalf.

Taft-Hartley Act

A United States federal law enacted in 1947 that restricts the activities and power of labor unions.

Wagner Act

A foundational piece of U.S. labor law, officially the National Labor Relations Act of 1935, which guarantees basic rights of private sector employees to organize into trade unions, engage in collective bargaining, and take collective action such as strikes.

Pure Monopsony

A market condition where there is only one buyer for a product or service, giving that buyer significant control over market conditions.