Multiple Choice
On January 1st, 2014 ABC Inc.had invoiced a client in New York for $10,000 US for services rendered that day.ABC did not hedge this receivable.The receivable is due in 60 days.On January 1st, 2014, the spot rate was $1US = $1.02CDN.On January 31st, 2014, the spot rate was $1US = $1.05CDN.What is the effect of the above information on ABC's January financial statements?
A) A $300 debit to OCI.
B) A $300 foreign exchange loss.
C) A $300 credit to OCI.
D) A $300 foreign exchange gain.
Correct Answer:
Verified
Correct Answer:
Verified
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