Excel Sources Inc

question 56

Multiple Choice

Excel Sources Inc. is a U.S. incorporated company. Due to change in exchange rate, it receives $150,000 as payment against a sale of $165,000. Under the two-transaction perspective:

• A) no journal entry will be prepared on the date of sale.
• B) the sale will be recorded at $150,000 on the date of sale.
• C) foreign exchange loss will be recorded for $15,000.
• D) Accounts Receivable will be debited for $15,000 on the date of payment.

Understand the concept of creative destruction and its implications for markets and economies.

Identify the primary forces encouraging the entry of new firms into purely competitive industries.

Describe the dynamic adjustments in supply and demand within various types of industries (decreasing-cost, increasing-cost, constant-cost) under changes in market conditions.

Analyze the cost structure and profitability (economic profits, losses, and normal profits) of firms operating in perfectly competitive markets.

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Definitions:

Stare Decisis

A legal principle that obligates courts to follow historical cases when making a ruling on a similar current or future case.

Precedent

A court decision that furnishes authority for deciding later cases in which similar facts are presented.

Statutory Law

Law enacted by a legislative body, forming a codified set of rules that are legally enforceable.

Annual Mortality Rate

The proportion of individuals in a population who die within a one-year period, often expressed per 1,000 or 100,000 persons.