Assume an Australian FI Has US$100 000 in Assets and US$200

question 44

Multiple Choice

Assume an Australian FI has US$100 000 in assets and US$200 000 in liabilities. Further, the FI has bought US$40 000 and sold US$20 000. What is the net FX bought position of the Australian FI?

• A) -US$20 000
• B) US$20 000
• C) US$80 000
• D) US$100 000

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Definitions:

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the appropriate period.

Unearned Service Revenue

Income received by a company for services yet to be performed, considered a liability until the service is delivered.

Legal Services

Professional services offered by qualified attorneys or lawyers that include legal advice, representation in court, and other activities related to the practice of law.

Accumulated Depreciation

The cumulative amount of depreciation expense recorded for an asset from the time of its acquisition.