The Following Information Pertains to Questions

question 27

Multiple Choice

The following information pertains to questions
ABC Inc.sells thermal compressors throughout the world.On January 1,2013,the company sold 500 compressors to an American supplier at a total cost $60,000 U.S.when the spot rate was US$1=$1.1750CDN.Payment on the invoice was due by May 1,2013.ABC entered into a 4-month hedge with its bank at a forward rate of $1.20CDN on January 2,2013.ABC's year-end is on January 31,and on that date in 2013,the spot rate in effect was $1.1825CDN.
ABC received payment from its supplier on May 1,2013 when the spot rate was US$1=$1.1975 CDN.
-What is the required adjustment to ABC's accounts receivable at year-end as a result of this transaction?

• A)Nil.
• B)$450 Increase
• C)$900 Increase
• D)$450 Decrease

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Definitions:

Major Surgery

A type of surgery that involves significant risk to the patient, a long recovery period, or large incisions and alterations to the body.

Surgical Exploration

A medical procedure that involves opening up a part of the body to investigate and potentially treat conditions that are not clearly diagnosed through less invasive measures.

General Anesthesia

General anesthesia is a medically induced coma and loss of protective reflexes resulting from the administration of one or more general anaesthetic agents, used during surgical procedures to ensure that patients are not awake or in pain.

Moderate Sedation

A type of anesthesia that depresses consciousness, allowing patients to tolerate unpleasant procedures while maintaining airway control and adequate cardiopulmonary function.