By what amount (in Canadian Dollars) would XYZ have to adjust its Loan Liability on December 31, 2017 as a result of the year's foreign exchange rate fluctuations?
A) $3,500 decrease.
B) $2,500 decrease.
C) $2,500 increase.
D)Nil.

Question

Quizplus · Accepted Answer

The correct answer is a $2,500 decrease, indicating that the foreign exchange rate fluctuations resulted in a reduction of the loan liability by this amount.

By What Amount (In Canadian Dollars) Would XYZ Have to Adjust