In the Closing Procedure, the Total of the ________ Account

question 42

Short Answer

In the closing procedure, the total of the ________ account balances are transferred to the debit side of the Income Summary account.

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Definitions:

Local Overseas Currency

The official money or legal tender used in a country other than one's own, especially in the context of international trade or travel.

Functional Currency

The currency of the primary economic environment in which an entity operates, and in which it typically generates and expends cash.

Parent's Cash Flows

The cash inflows and outflows directly associated with the primary operating entity in a group of companies or conglomerate.

AASB 121

Refers to the Australian Accounting Standards Board provision dealing with the effects of changes in foreign exchange rates.