REFERENCE: Ref.09_05 On April 1,2007,Shannon Company,a U.S.company,borrowed 100,000 Euros from a Foreign

question 38

Multiple Choice

REFERENCE: Ref.09_05
On April 1,2007,Shannon Company,a U.S.company,borrowed 100,000 euros from a foreign lender by signing an interest-bearing note due April 1,2008.The dollar value of the loan was as follows:
-Angela,Inc. ,a U.S.company,had a euro receivable from exports to Spain and a British pound payable resulting from imports from England.Angela recorded foreign exchange gain related to both its euro receivable and pound payable.Did the foreign currencies increase or decrease in dollar value from the date of the transaction to the settlement date?

• A)A above
• B)B above
• C)C above
• D)D above
• E)E above

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Definitions:

Unit Sales

The total number of individual items or units that are sold within a specific period.

Traceable Fixed Expense

Fixed costs that can be directly linked to a specific segment of a business, like a product line or department.

Price Increase

An adjustment made to the selling price of goods or services, often due to factors such as inflation, increased costs of production, or improvements in quality.

Percentage Change

A mathematical calculation that shows how much a quantity has increased or decreased as a proportion of its previous value.