Exchange Differences Resulting from the Translation of Foreign Operations to Presentation

question 14

Multiple Choice

Exchange differences resulting from the translation of foreign operations to presentation currency are shown:

• A) in the 'retained earnings' section of equity.
• B) in the 'general reserve' section of equity.
• C) in the 'asset revaluation reserve' section of equity.
• D) none of the given answers.

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Definitions:

Items

Individual objects or units, especially those included in a list or collection.

Economic Profits

The difference between total revenue and the total costs (both explicit and implicit costs) of a company, indicating the surplus generated from business activities.

Savings Account

An account for holding deposits at a bank or another financial entity, ensuring the safety of the principal amount while offering a slight interest rate.

Annual Interest

The amount of interest due over the course of a year on borrowed capital or invested funds.