Parker Corp

question 89

Multiple Choice

Parker Corp., a U.S. company, had the following foreign currency transactions during 2013:
(1) ) Purchased merchandise from a foreign supplier on July 5, 2013 for the U.S. dollar equivalent of $80,000 and paid the invoice on August 3, 2013 at the U.S. dollar equivalent of $82,000.
(2) ) On October 1, 2013 borrowed the U.S. dollar equivalent of $872,000 evidenced by a non-interest-bearing note payable in euros on October 1, 2013. The U.S. dollar equivalent of the note amount was $860,000 on December 31, 2013, and $881,000 on October 1, 2014.
What amount should be included as a foreign exchange gain or loss from the two transactions for 2014?

• A) $9,000 loss.
• B) $9,000 gain.
• C) $11,000 loss.
• D) $21,000 loss.
• E) $21,000 gain.

Understand the reporting requirements for publicly traded companies, including Form 10-K and 10-Q.

Distinguish between current and noncurrent assets and understand their presentation in financial statements.

Identify the external users of accounting information and their reliance on financial reports for decision making.

Understand the concept and calculation of financial ratios and their importance in financial analysis.

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Definitions:

Age

A measure of time that an individual or object has existed from a particular starting point, commonly used demographically to categorize populations.

Gender

The socially constructed roles, behaviors, expressions, and identities associated with being male, female, or gender diverse.

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A formal request, often filed by employees or labor organizations, seeking an election to establish or decertify a labor union as the representative of a group of workers.

Union Instrumentality

The effectiveness of a labor union in achieving desired outcomes or benefits for its members, such as higher wages or better working conditions.