Taste Bits Inc

question 67

Multiple Choice

Taste Bits Inc. purchased chocolates from Switzerland for 200,000 Swiss francs (SFr) on December 1, 20X8. Payment is due on January 30, 20X9. On December 1, 20X8, the company also entered into a 60-day forward contract to purchase 100,000 Swiss francs. The forward contract is not designated as a hedge. The rates were as follows:

-Based on the preceding information,the entries on January 30,20X9,include a:

• A) Debit to Dollars Payable to Exchange Broker, $184,000.
• B) Credit to Foreign Currency Transaction Gain, $4,000.
• C) Credit to Foreign Currency Receivable from Exchange Broker, $180,000.
• D) Debit to Foreign Currency Units (SFr), $184,000.

Analyze the role of companies and work environments as agents of socialization in contemporary society.

Understand the concept and requirements for negotiability of instruments under the Uniform Commercial Code (UCC).

Identify the characteristics and differences between various types of negotiable instruments (checks, drafts, promissory notes, certificates of deposit).

Recognize the legal effect of electronic processing of checks under the Check 21 Act.

---

Definitions:

Retiring Partner

A partner who is leaving a partnership, often subject to terms regarding withdrawal, compensation, and responsibilities outlined in a partnership agreement.

Limited Partnership

A business arrangement where at least one partner is liable only to the extent of their investment, while at least one other has unlimited liability.

Legal Position

The status or standing of an individual's or entity's situation according to the law.

Mail-Order Business

A retail operation that sells products directly to customers through catalogs, the internet, or other mail distribution methods.