To Determine That Sales Are Accurately Recorded, the Unit Prices

question 23

Multiple Choice

To determine that sales are accurately recorded, the unit prices on the duplicate sales invoices are normally compared with

• A) the original invoices.
• B) an approved master price list.
• C) the amounts recorded in the sales journal for that transaction.
• D) the amounts posted to the customer's account in the accounts receivable master file.

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Definitions:

Spot Rate

The current market price used to directly exchange one currency for another, for immediate delivery.

Forward Rate

The agreed-upon exchange rate for a currency transaction that will occur at a future date.

Average Rate

The average rate is a mean exchange rate over a specified period, used for accounting purposes to convert foreign currencies into the functional currency.

Foreign Exchange Gain

A profit resulting from changes in the exchange rate between the base currency and the foreign currency in which a transaction is denominated.