Mills Inc Had a Receivable from a Foreign Customer That Is

question 36

Multiple Choice

Mills Inc. had a receivable from a foreign customer that is due in the local currency of the customer (stickles) . On December 31, 2010, this receivable for §200,000 was correctly included in Mills' balance sheet at $132,000. When the receivable was collected on February 15, 2011, the U.S. dollar equivalent was $144,000. In Mills' 2011 consolidated income statement, how much should have been reported as a foreign exchange gain?

• A) $0.
• B) $36,000.
• C) $48,000.
• D) $10,000.
• E) $12,000.

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Definitions:

Actual Stressors

Real and tangible factors in one's environment that cause stress.

Anticipatory Stressors

Upcoming or future events that are perceived to be threatening.

Sympathetic Division

Part of the autonomic nervous system that prepares the body for stressful or energetic activity, often termed the "fight or flight" system.

Autonomic Nervous System

The part of the nervous system that controls involuntary bodily functions, such as heart rate and digestion.