Mint Corporation Has Several Transactions with Foreign Entities

question 62

Multiple Choice

Mint Corporation has several transactions with foreign entities.Each transaction is denominated in the local currency unit of the country in which the foreign entity is located.On November 2,20X8,Mint sold confectionary items to a foreign company at a price of LCU 23,000 when the direct exchange rate was 1 LCU = $1.08.The account has not been settled as of December 31,20X8,when the exchange rate has increased to 1 LCU = $1.10.The foreign exchange gain or loss on Mint's records at year-end for this transaction will be:

• A)$460 loss
• B)$387 loss
• C)$387 gain
• D)$460 gain

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Definitions:

Group Standard

The norms or expectations that a group holds for the behavior, attitudes, and appearance of its members.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms, policies, or societal expectations.

Behavior

Everything we do that can be directly observed.

Social Facilitation Effect

The tendency for people to perform differently when in the presence of others, usually better on well-practiced tasks and worse on new tasks.