The Following Items Are in the Financial Statements of Pirie

question 78

Multiple Choice

The following items are in the financial statements of Pirie Ltd as at 30 June 2015. $$\begin{array} { | l | l | } \hline \text { I } & \text { Foreign currency accounts receivable } \\\hline \text { II } & \text { Foreign currency long-term debt } \\\hline \text { III } & \text { Machinery measured in foreign currency-at cost } \\\hline \text { IV } & \text { Inventories measured in foreign currency } \\\hline\end{array}$$ Which of the following combinations identify all items required to be translated at spot rate on 30 June 2015 as prescribed in AASB 121 The Effects of Changes in Foreign Exchange Rates?

• A) I and II
• B) II and III
• C) II and IV
• D) III and IV

Interpret the cost behavior of different types of costs in response to changes in activity levels.

Understand the concept of relevant range in cost analysis.

Understand the distinction between job-order costing and process costing and the appropriate contexts for their use.

Grasp the structure and purpose of the cost reconciliation report.

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Definitions:

Payment Stream

A sequence of payments made over a period of time as per the terms of a financial agreement.

Payable Today

The total amount that is due and needs to be paid immediately or on the current date.

Short-Term Interest Rate

The interest rate charged on loans or realized on investments over a short period, typically less than a year.

Surplus Funds

Additional money or assets available after all expenses have been accounted for, often used for investment or saving.