Phan Ltd, a Canadian Company, Sold Goods to a Foreign Customer

question 5

Multiple Choice

Phan Ltd., a Canadian company, sold goods to a foreign customer for 1,000,000 foreign currency (FC) units, which was equivalent to $500,000 CAD. By the time the customer paid Phan, the exchange rates had changed and 1,000,000 FC units was equivalent to $515,000 CAD. How should the resulting $15,000 CAD difference between the sale and payment dates be treated?

• A)As an increase in sales
• B)As a decrease to cost of sales
• C)As a realized gain
• D)As an unrealized gain

Understand the effects of compounding on investments and depreciation calculations.

Understand the nature of power dynamics and reluctance to relinquish power.

Recognize advocacy as an approach to planned change and its implications for social work.

Identify and understand the role of case advocacy in addressing individual and societal issues.

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Definitions:

Managerial Accounting Report

An internal financial report tailored to meet the information needs of an organization's management for decision-making purposes.

Statement of Stockholders' Equity

A financial document that outlines the changes in the equity section of a company's balance sheet over a period, reflecting transactions like stock issuance, dividends, and earnings.

Schedule of Total Manufacturing Costs

This is a detailed statement summarizing the total costs—direct materials, direct labor, and manufacturing overhead—incurred during the production of goods in a specific period.

Annual Report

A comprehensive report on a company's activities, financial performance, and strategies throughout the preceding year, intended for shareholders and potential investors.