On July 1, 2020, CANCO Purchased Inventory from Its Main

question 16

Multiple Choice

On July 1, 2020, CANCO purchased inventory from its main U.S. supplier, RNB Enterprises, at a cost of US$12,000. CANCO's year end is on July 31. Payment of US$12,000 for the inventory is due on August 31, 2020. Some important dates regarding this transaction, as well as the exchange rates in effect at each of these dates are shown below:
$$\begin{array} { | l | l | l } \hline \text { Parsaction date: July } 1,2020 : & \text { 1 U.S. Dollar } = \text { CDN } \$ 1.370 \\\hline\text { Year end July } 31,2020 : & \text { 1 U.S. Dollar } = \text { CDN } \$ 1.345 \\\hline \text { Setternent date: August } 31,2020 : & \text { 1 U.S. Dollar } = \text { CDN } \$ 1.325 \\\hline\end{array}$$ At what amount would CANCO record its liability to RNB at the time of the inventory purchase?

• A) CDN$15,900
• B) CDN$16,440
• C) CDN$16,140
• D) US$12,000

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Definitions:

Reward

Any form of compensation, recognition, or benefit used to reinforce positive behavior and outcomes within an organization.

Desirable Behavior

Behavior that is seen as positive or beneficial within a given context, often encouraged by society or organizations.

Secondary Reinforcer

A stimulus that has become reinforcing by being associated with a primary reinforcer; it indirectly satisfies biological needs.

Neutral Value

A concept or object regarded as being without inherent positive or negative connotations or effects, often seen in a neutral context.