How Much Foreign Exchange Gain or Loss Should Be Included

question 56

Multiple Choice

How much foreign exchange gain or loss should be included in Shannon's 2018 income statement?

• A) $1,000 gain.
• B) $1,000 loss.
• C) $2,000 gain.
• D) $2,000 loss.
• E) $8,000 loss.

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Definitions:

Obligated

Being legally or morally bound to do something or to fulfill a contract or promise.

Drawer

The person who issues or writes a negotiable instrument, such as a check, directing the payment of the specified amount of money.

Demand Instrument

A financial instrument that is payable immediately upon demand, such as a check or certain promissory notes.

Definition

A precise statement or description of the nature, scope, or meaning of something.