On December 5,20X8,Texas Based Imperial Corporation Purchased Goods from a Saudi

question 59

Multiple Choice

On December 5,20X8,Texas based Imperial Corporation purchased goods from a Saudi Arabian firm for 100,000 riyals (SAR) ,to be paid on January 10,20X9.The transaction is denominated in Saudi riyals.Imperial's fiscal year ends on December 31,and its reporting currency is the U.S.dollar.The exchange rates are:

-Based on the preceding information,what journal entry would Imperial make on December 31,20X8,to revalue foreign currency payable to equivalent U.S.dollar value?

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Mistake of Fact

An error regarding a material fact that affects the parties' understanding of a contract, potentially rendering it voidable.

Criminal Responsibility

The legal liability or accountability of an individual for committing a crime, indicating culpability.

Disorderly Conduct

A broad legal term encompassing various acts deemed disruptive to public peace and decent behavior.

Misdemeanor

A lesser crime than a felony, punishable by a fine or imprisonment for up to one year in other than a state or federal penitentiary.