Norton Co, a U

question 61

Multiple Choice

Norton Co., a U.S. corporation, sold inventory on December 1, 2011, with payment of 10,000 British pounds to be received in sixty days. The pertinent exchange rates were as follows:

What amount of foreign exchange gain or loss should be recorded on January 30?

• A) $1,516 gain.
• B) $1,516 loss.
• C) $575 loss.
• D) $500 loss.
• E) $500 gain.

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Definitions:

Consensus

A general agreement or unified opinion among a group of people, often achieved through discussion and collaboration.

Consistency

The quality of always acting or behaving in the same way, leading to predictable and reliable outcomes or performances.

Conditioned Response

A learned reaction to a specific stimulus that occurs after repeated exposure to that stimulus.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention; in conditioning, it becomes associated with an unconditioned stimulus.