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The following data applies to the next three questions. UVW Ltd , an Australian company, purchases inventory from XYZ plc , a listed British company.
The following data applies to the next three questions. UVW Ltd an Australian company, purchases inventory from XYZ plc a listed British company. Relevant events and the spot rates at each date are shown as follows: Question The book value of the inventory on the day it is recorded as an asset by UVW Ltd is in whole dollars: a b $ c $ d $ c $ Question The cumulative gain or loss on the foreign currency payable reported in UVW's Income Statement for the year ended June is: a Zero b $ gain c $ loss d $ gain e $ loss Question The net gain or loss on the foreign currency payable and the hedge contract from July to August is in whole dollars a Zero b $ loss c $ gain d $ loss e $ gain
The following data applies to the next three questions.
UVW Ltd an Australian company, purchases inventory from XYZ plc a listed British company. Relevant
events and the spot rates at each date are shown as follows:
Question The book value of the inventory on the day it is recorded as an asset by UVW Ltd is
in whole dollars:
a
b $
c $
d $
c $
Question The cumulative gain or loss on the foreign currency payable reported in UVW's
Income Statement for the year ended June is:
a Zero
b $ gain
c $ loss
d $ gain
e $ loss
Question The net gain or loss on the foreign currency payable and the hedge contract from
July to August is in whole dollars
a Zero
b $ loss
c $ gain
d $ loss
e $ gain
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