On January 1, a German company purchased merchandise from a U.S. firm for $50,000, payable on March 1. The exchange rate for the euro on January 1 was $1.10. If the exchange rate increases to $1.12 on March 1, what amount of gain or loss would the U.S. firm report related to currency fluctuations?

a. $1,000 gain.

b. $1,000 loss.

c. $500 gain.

d. No gain or loss would be reported.

2. In general terms, identify several factors that prompt different countries to develop different accounting principles. 

3. What is the International Accounting Standards Board?

Why has the board been unable to obtain a uniform global application of its standards?

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b 1 000 loss 50 000 x 1 10 55 000 50 000 x 1 12 56 000 56 000 55 000 1 000 2 The different factors that prompt different countries to develop different accounting principles are The different economic ... View the full answer