Meisner Co

question 31

Multiple Choice

Meisner Co.ordered parts costing §100,000 for a foreign supplier on May 12 when the spot rate was $.24 per stickle.A one-month forward contract was signed on that date to purchase §100,000 at a forward rate of $.25 per stickle.On June 12, when the parts were received and payment was made, the spot rate was $.28 per stickle.At what amount should inventory be reported?

• A) $ 0.
• B) $28,000.
• C) $24,000.
• D) $25,000.
• E) $ 2,000.

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Definitions:

Secondary Data

Marketing data that have been gathered, tabulated, and made available by an outside source.

Secondary Information

Data that has been collected previously by someone else, used for research or analysis.

Primary Data

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Tertiary Data

Information that has been collected and processed from secondary sources rather than obtained directly from original sources.