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:

Error Variable

A variable that represents the difference between observed values and the values predicted by a model.

Distribution

In statistics, the way in which values of a variable or group of variables are spread or dispersed across possible values.

Coefficient of Determination

Represents the ratio of explained variance by the model to the total variance, indicating the model's explanatory power.

Coefficient of Correlation

A rephrased definition of the correlation coefficient, highlighting its role in measuring the degree of correlation between two variables.