Assume That Millan Agrees to Purchase US$100,000 for C$84,745 on January

question 71

Multiple Choice

Assume that Millan agrees to purchase US$100,000 for C$84,745 on January 15,2018.The exchange rate at year-end is US$1 = C$1.20 and the January 15,2018 exchange rate is US$1 = C$1.19.What journal entry is required at year-end?

• A) $701 loss.
• B) $701 gain.
• C) $1,412 loss.
• D) $1,412 gain.

---

Definitions:

Social Responsibility

The obligation of individuals and organizations to act in ways that protect and improve the welfare of society as a whole.

Ethical Expectations

The standards or norms regarding ethical behavior that are anticipated or required by an individual, organization, or society.

Accommodative Strategy

An approach where a company seeks to adapt and make adjustments to satisfy public expectations or demands, often within the context of corporate social responsibility.

Discretionary Responsibility

The voluntary obligations and actions taken by organizations beyond legal requirements, often in the context of corporate social responsibility.