Which of the Following Statements Is True

question 9

Multiple Choice

Which of the following statements is true?

• A)The historical rate is the exchange rate at the beginning of the reporting period and the closing rate is the exchange rate at the end of the reporting
• Period.
• B)The historical rate is the exchange rate at the date of the transaction and the closing rate is the exchange rate at the end of the reporting period.
• C)The spot rate is the exchange rate at the date of the transaction and the closing rate is the exchange rate at the conclusion of a hedge instrument.
• D)The historical rate is the exchange rate at the beginning of the reporting period and the forward rate is the exchange rate at the end of the reporting
• Period.

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Definitions:

Postdated Check

A check written with a date in the future, preventing it from being cashed or deposited until that date.

Reversing Entry

An accounting entry that effectively cancels out a previous entry, typically used at the beginning of a new accounting period to simplify record-keeping.

Collection Of The Note

The process of receiving the payment due from the issuer as specified in the note payable.