On November 14,2011,Scuby Company (A U

question 3

Multiple Choice

On November 14,2011,Scuby Company (a U.S.corporation) enters into a transaction which is denominated in the Canadian dollar.Assume the exchange rate at November 14 is $1.03,and at the December 31 year-end reporting date,the exchange rate is $1.07.On January 27,2012,when the transaction is settled,the exchange rate is $1.05.At the date of settlement,which of the following is correct?

• A)The historical rate = $1.05,and the spot rate at which it is settled is the same as the current rate at $1.07.
• B)The historical rate = $1.03,and the spot rate at which it is settled is the same as the current rate at $1.06.
• C)The historical rate = $1.05,the current rate for reporting at December 31,2011 is $1.07,and the spot rate at which it is settled is $1.03.
• D)The historical rate = $1.03,the current rate for reporting at December 31,2011 is $1.07,and the spot rate at which it is settled is $1.05.

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Definitions:

Aerobic Respiration

A metabolic process in which cells convert biochemical energy from nutrients into ATP, with oxygen as the final electron acceptor.

Photosynthesis

Photosynthesis is the process by which green plants, algae, and some bacteria convert light energy, typically from the sun, into chemical energy stored in glucose, using carbon dioxide and water.

Protocells

Simple, primitive cells believed to be the precursors to modern cells, consisting of a lipid bilayer membrane enclosing basic molecular components.

Lipid Membrane

A bi-layer structure forming the outer boundary of cells, composed mainly of lipids and proteins.