On 6/1/17, an American Firm Purchased Inventory Costing 100,000 Canadian

question 24

Multiple Choice

On 6/1/17, an American firm purchased inventory costing 100,000 Canadian Dollars from a Canadian firm to be paid for on 8/1/17.Also on 6/1/17, the American firm acquired an option for $1,500 to purchase 100,000 Canadian dollars for delivery on 8/1/17.The strike price for the option was $0.685.The exchange rates were as follows: ?

$$\begin{array} { l r r } & \text { Spot } & \text { Option value } \\\hline 6 / 1 / 17 & 1 \mathrm { CD } = \$ 0.68 & \$ 1,500 \\6 / 30 / 17 & 1 \mathrm { CD } = \$ 0.70 & \$ 2,500 \\8 / 1 / 17 & 1 \mathrm { CD } = \$ 0.73 & \$ 4,500\end{array}$$ The American firm's fiscal year end is June 30, 2017.What is the net gain or loss recognized in the financial statements for the year ended June 30, 2017?

• A)$2,000 loss
• B)$1,000 loss
• C)$0
• D)$1,000 gain

Describe the effects of physical properties of stimuli on sensory experiences, such as light intensity on vision and sound frequency on hearing.

Understand the role of cultural, psychological, and physiological factors in perception.

Distinguish between sensation and perception and their interrelation.

Recognize the significance of sensory thresholds in detecting environmental stimuli.

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Definitions:

Direct Material

Represents raw materials that can be directly attributed to the production of specific goods, directly affecting the finished product's cost and quality.

Units

A measure or quantity used as a standard of measurement for expressing amounts, especially in the context of production or inventory.

Materials Price Variance

The financial difference between the actual cost of materials and the expected (standard) cost, indicating cost management efficiency.

Direct Material

Materials that can be directly associated with the production of goods, directly entering into and being a significant component of the finished product.