Which of the Following Terms Represents Converting the Cost of an Item

question 136

Multiple Choice

Which of the following terms represents converting the cost of an item given in one currency to its cost in a different currency?

• A)Foreign market value
• B)Dollar value exchange rate
• C)Foreign currency translation
• D)Foreign currency exchange rate

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Definitions:

Permanent Accounts

Financial accounts whose balances are carried over into the next accounting period, including assets, liabilities, and equity accounts.

Real Accounts

Accounts that represent assets, liabilities, and equity, which are not closed at the end of the accounting period and carry over their balances.

Permanent Accounts

Accounts in the general ledger that are not closed at the end of an accounting year and whose balances are carried forward to the next year.

Balance Sheet Accounts

Accounts that report the financial position of a company, including assets, liabilities, and shareholders' equity, at a specific point in time.