When the Functional Currency Is Different Than the Presentation Currency

question 49

Multiple Choice

When the functional currency is different than the presentation currency, monetary items are restated _________________________ and any gain or loss is recorded in ________________.

• A)at the spot rate; income.
• B)at the closing rate at the financial statement date; comprehensive income.
• C)at the closing rate at the financial statement date; income.
• D)at the spot rate; other comprehensive income.

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Definitions:

Write Checks

The process of creating a check to pay a specified amount to a payee from the writer’s bank account.

Record Services

The process of documenting the services provided by a business, often for billing or accounting purposes.

Enter Bills

The process in accounting software where incoming invoices from suppliers are recorded ahead of payment.

Purchase Order

A document issued by a buyer to a seller, formalizing the terms of a purchase of goods or services.