Taste Bits Inc

question 21

Multiple Choice

Taste Bits Inc. purchased chocolates from Switzerland for 200,000 Swiss francs (SFr) on December 1, 20X8. Payment is due on January 30, 20X9. On December 1, 20X8, the company also entered into a 60-day forward contract to purchase 100,000 Swiss francs. The forward contract is not designated as a hedge. The rates were as follows:

-Based on the preceding information,the entries on January 30,20X9,include a:

• A) Debit to Dollars Payable to Exchange Broker, $180,000.
• B) Credit to Cash, $184,000.
• C) Credit to Premium on Forward Contract, $4,000.
• D) Credit to Foreign Currency Receivable from Exchange Broker, $180,000.

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Definitions:

Cancer Risk

The probability of developing cancer over a certain period of time, influenced by genetic, environmental, and lifestyle factors.

E-Cigarettes

Electronic devices that simulate the experience of smoking, delivering nicotine in a vapor form without the combustion of tobacco.

Opioids

A class of drugs derived from the opium poppy or synthesized analogues, used for pain relief, but can be addictive.

Nicotine

A stimulating and highly addictive chemical found in tobacco, which acts on the nervous system to produce feelings of pleasure and arousal.