On August 1, Central Computers, Inc

question 110

Multiple Choice

On August 1, Central Computers, Inc. purchased thirty computer chips, on account, from a company located in Taiwan for 500,000 Taiwan dollars. On that date the Taiwan dollar is worth $0.040. On September 1, when the Taiwan dollar was worth $0.038, payment was made. The journal entry to record the sale on August 1 would include a:

• A) credit to Accounts Payable $19,000.
• B) credit to Accounts Payable $20,000.
• C) credit to Foreign-Currency Transaction Gain $1,000.
• D) credit to Cash $20,000.

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Definitions:

Intelligence

The ability to learn, understand, and apply information, make sound judgments, solve problems, and adapt to new situations.

Spatial Representation

The ability to perceive, analyze, and understand the spatial relationships between objects or within an environment.

Problem-Solving Skills

The ability to find solutions for challenging situations or obstacles effectively.

Intelligence Quotient

A measure of a person's cognitive abilities in relation to their age group, typically assessed through standardized tests.