Question : 65. At the current exchange rate of $1.40 per British pound, : 1229480

65. At the current exchange rate of $1.40 per British pound, a one-day pass to Worldwide Theme Park of Florida sells for 45 pounds at travel agencies throughout Great Britain. If the exchange rate increases to $1.70 per pound, what will happen to the price of a one-day pass sold in Great Britain? 
A. The price will be unchanged.
B. The price will fall to 37 pounds.
C. The price will increase to 54 pounds.
D. The price will fall by 12 pounds.

66. Rochester, Inc. purchased cameras from a Japanese company at a price of 4 million yen. On the purchase date, the exchange rate was $0.0100 per Japanese yen, but when Rochester, Inc., paid the liability, the exchange rate was $0.0103 per yen. When this foreign account payable was paid, Rochester, Inc., recorded a: 
A. Debit to Inventory of $1,200.
B. Loss of $1,200.
C. Credit to Accounts Payable of $41,200.
D. Gain of $1,200.

67. Hayden, Inc. purchased knobs from a Greek company for 185,000 Euros. On the purchase date the exchange rate was $0.80 per Euro, but when Hayden paid the liability, the exchange rate was $0.70 per Euro. When this foreign account payable was paid, Hayden, Inc., recorded a: 
A. Debit to Inventory of $18,500.
B. Loss of $18,500.
C. Credit to Accounts Payable of $148,000.
D. Gain of $18,500.

68. Tuliptime, Inc. sold American fashions to a Japanese company at a price of 4 million yen. On the sale date, the exchange rate was $.0100 per Japanese yen, but when Tuliptime received payment from its customer, the exchange rate was $.0103 per yen. When the foreign receivable was collected, Tuliptime: 
A. Credited Sales for $1,200.
B. Debited Cash for $40,000.
C. Credited Gain on Fluctuation of Foreign Currency for $1,200.
D. Debited Loss on Fluctuation of Foreign Currency for $1,200.

69. Barter Corp. sold American telecommunications equipment to a British company for 650,000 pounds. On the sale date, the exchange rate was $1.65 per British pound, but when Barter received payment from its customer, the exchange rate was $1.60 per pound. When the foreign receivable was collected, Barter Enterprises: 
A. Credited Sales for $32,500.
B. Debited Cash for $1,040,000.
C. Credited Gain on Fluctuation of Foreign Currency for $32,500.
D. Debited Loss on Fluctuation of Foreign Currency for $32,500.

70. Flynn Corporation purchased bicycles from a British manufacturer at a price of 45,000 British pounds on November 15, 2011with payment due in 60 days. Using the following exchange rates, what gain or loss from currency fluctuations should be recognized in 2011 and 2012, respectively?
Nov. 15, 2011 $1.70 per British pound
Dec. 31, 2011 $1.75 per British pound
Jan. 15, 2012 $1.73 per British pound 
A. A $2,250 loss in 2011 and a $900 gain in 2012.
B. No gain or loss in 2011 and a $1,350 loss in 2012.
C. A $2,250 gain in 2011 and a $900 loss in 2012.
D. No gain or loss in 2011 and a $1,350 gain in 2012.

71. Exact Instruments sold equipment to a British research group at a price of 70,000 British pounds on December 1, 2011 with payment due in 90 days. Using the following exchange rates, what gain or loss from currency fluctuations should be recognized in 2011 and 2012, respectively?
Dec. 1, 2011 $1.78 per British pound
Dec. 31, 2011 $1.82 per British pound
Mar. 1, 2012 $1.77 per British pound 
A. A $2,800 loss in 2011 and a$3,500 gain in 2012.
B. No gain or loss in 2011 and a $700 loss in 2012.
C. A $2,800 gain in 2011 and a $3,500 loss in 2012.
D. No gain or loss in 2011 and a $700 gain in 2012.

72. Trente Switch and Signal sold equipment to a Canadian transportation company at a price of 300,000 Canadian dollars with payment due in 60 days. On the date of sale, the exchange rate was 1.50 Canadian dollars per U.S. dollar. Trente decided to hedge the risk of currency fluctuations by purchasing 300,000 Canadian dollars with payment due in 60 days. If the exchange rate in 60 days is 1.25 Canadian dollars per U.S. dollar, Trente Switch and Signal will: 
A. Recognize a net gain of $40,000 on the two transactions.
B. Recognize a $40,000 gain when it collects the receivable and incur a $40,000 loss when it pays the liability.
C. Incur a $40,000 loss when it collects the receivable and recognize a $40,000 gain when it pays the liability.
D. Incur a net loss of $40,000 on the two transactions.

73. The Foreign Corrupt Practices Act (FCPA) imposes _____ for managers who engage in bribes. 
A. Fines
B. Deportation
C. Quotas
D. Taxes

74. The Foreign Corrupt Practices Act (FCPA) affects all of the following except: 
A. United States companies.
B. Foreign companies operating in the United States.
C. Foreign companies operating solely in their home country.
D. Affiliates and agents of a United States company or a foreign company operating in the United States.