On September 1,2017,Mudd Plating Company Entered into Two Forward Exchange

question 32

Multiple Choice

On September 1,2017,Mudd Plating Company entered into two forward exchange contracts to purchase 250,000 euros each in 90 days.The relevant exchange rates are as follows: The first forward contract was to hedge a purchase of inventory on September 1,payable on December 1.On September 30,what amount of foreign currency transaction loss should Mudd Plating report in income?

• A)$0.
• B)$2,500.
• C)$5,000.
• D)$10,000.

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Definitions:

Quantitatively Measurable

Attributes or phenomena that can be measured or quantified using numerical values or data.

Path-goal Theory

A leadership theory that suggests leaders adjust their style to best suit the follower's environmental and psychological contingencies to achieve their goals.

Motivational Forces

Internal or external factors that stimulate desire and energy in people to be continually interested and committed to a job, role, or subject, or to make an effort to attain a goal.

Transformational Leadership

Approach to leadership that focuses on the way that leaders transform group goals and actions – mainly through the exercise of charisma. Also a style of leadership based on charisma.