Use the Following Information to Answer the Question(s) Below

question 28

Multiple Choice

Use the following information to answer the question(s) below.

On November 1, 2014, Rolleks Corporation sold merchandise to Watchem Corporation, a Swiss firm. Rolleks measured and recorded the account receivable from the sale at $107,100. Watchem paid for this account on November 30, 2014. Spot rates for Swiss francs on November 1 and November 30, respectively, were $1.05 and $1.02.

-If the sale of merchandise is denominated in dollars,the November 30 entry to record receipt of the payment from Watchem included a

• A)credit to Accounts Receivable for $104,040.
• B)credit to Exchange Gain for $3,060.
• C)debit to Cash for $107,100.
• D)debit to Exchange Loss for $3,060.

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Definitions:

Politic

Strategies and activities associated with governance, decision-making within groups or organizations, or the exercise of authority and influence.

Aphasia

A condition characterized by the loss of the ability to understand or express speech, caused by brain damage.

Grammatical Devices

Tools used in languages to convey meaning, adhere to syntactic rules, and modify structure, such as tense, punctuation, and conjunctions.

Hypothesis

A proposed explanation for a phenomenon, made as a starting point for further investigation.