On 1 January, 2015, Hikers Inc

question 10

Multiple Choice

On 1 January, 2015, Hikers Inc., a U.S.-based company, borrowed £200,000 on a two-year note at a per annum interest of 4.5%. The spot rate on this day was $1.65 per pound. The spot rate on 31 December, 2015, was $1.64 per pound. The journal entries to account for this foreign currency borrowing will include:

• A) a debit to Cash for $200,000 on January 1, 2015.
• B) a credit to Notes Payable for $330,000 on December 31, 2015.
• C) a debit to Foreign Exchange Loss for $90 on December 31, 2015.
• D) a debit to Interest Expense for $14,760 on December 31, 2015.

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Definitions:

Social Awareness

The ability to understand and respond to the feelings, needs, and concerns of others, including recognizing social cues and appropriately adapting behavior.

Empowerment

The process of giving individuals or groups more control, authority, and responsibility regarding their own lives or work.

Delegation

The assignment of formal authority and responsibility for accomplishing a specific task to another person.

Specific Task

Refers to a particular piece of work or activity that is assigned or required to be done.