As Prescribed in AASB 121,when Remeasuring Financial Statements of Foreign

question 9

Multiple Choice

As prescribed in AASB 121,when remeasuring financial statements of foreign operations to functional currency,which of the following identifies all items to be re-measured at historic rates?

• A) cash, inventory and accounts receivable
• B) payables, long-term loan and unearned revenue
• C) inventory, goodwill, property plant and equipment
• D) accounts receivable, accounts payable and accrued expenses

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Definitions:

Interest

The charge for borrowing money or the return on invested capital, usually expressed as a percentage of the principal amount over a specific period.

Compounded Annually

A method where interest is calculated once a year on the initial principal and all accumulated interest from previous periods.

Plant Expansion

The process of increasing the capacity or capabilities of a manufacturing or production facility.

Sinking Fund Deposits

Money regularly set aside by a company to repay a debt or replace an asset in the future.