a.
Foreign exchange rate: The rate at which currency of one country is changed to currency of another country is called foreign exchange rate. Mainly there are two rate, i.e., direct exchange rate and indirect exchange rate.
Foreign exchange gain or loss: Foreign exchange gain or loss arises when there is selling or buying of any goods and services in foreign currency.
Forward contract: It is the contract between the purchase and the seller where they agreed to buy or sell an asset at a fixed price in the future on a specific date.
The recording of the
b.
Foreign exchange rate: The rate at which currency of one country is changed to currency of another country is called foreign exchange rate. Mainly there are two rate, i.e., direct exchange rate and indirect exchange rate.
Foreign exchange gain or loss: Foreign exchange gain or loss arises when there is selling or buying of any goods and services in foreign currency.
Forward contract: It is the contract between the purchase and the seller where they agreed to buy or sell an asset at a fixed price in the future on a specific date.
The effect on net income of A company if forward contract is made or if forward contract is not made.
Want to see the full answer?
Check out a sample textbook solution
Chapter 11 Solutions
LOOSE-LEAF Advanced Financial Accounting with Connect
- A company reports the following figures for the • Net income: $280,000 . Preferred dividends: $30,000 year: • • Average total stockholders' equity: $2,100,000 Average common stockholders' equity: $1,300,000 (a) The return on stockholders' equity, and (b) The return on common stockholders' equity. (Round your answers to one decimal place.)arrow_forwardI don't need ai answer general accounting questionarrow_forwardSoza earns $1,850 per pay period. Compute the FICA taxes for both employee and employer share. What is the total of the employee- and employer-share FICA tax liabilities for Soza's pay per pay period? Note: Assume that Soza has not met the Social Security wage base.arrow_forward
- I need help solving this financial accounting question with the proper methodology.arrow_forwardGeneral accountingarrow_forwardA company reported an increase in net sales from $5.2 billion in 2021 to $5.8 billion in 2022. During the same period, its gross profit rose from $1.6 billion in 2021 to $1.9 billion in 2022. Calculate the gross profit percentage for each year.arrow_forward
- Please explain the solution to this financial accounting problem with accurate explanations.arrow_forwardHow can I solve this financial accounting problem using the appropriate financial process?arrow_forwardOrion Co. wants to earn a net income of $250,000. The company has fixed costs of $800,000, and its variable costs are 70% of sales. What amount of sales is required to achieve the desired net income?arrow_forward
Financial Reporting, Financial Statement Analysis...FinanceISBN:9781285190907Author:James M. Wahlen, Stephen P. Baginski, Mark BradshawPublisher:Cengage Learning