Prior Ltd Controls Before Ltd

question 13

Multiple Choice

Prior Ltd controls Before Ltd.Prior Ltd's consolidated financial statements will recognise foreign exchange fluctuations on translation of Before Ltd's financial statements:

• A)in a foreign currency translation (FCT) reserve account
• B)in retained earnings
• C)as part of the period profit or loss
• D)as an extraordinary gain or loss

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Definitions:

Cash Payments Journal

A cash payments journal is a financial journal that records all cash outflows or payments made by a business.

Special Journal

A type of accounting journal dedicated to recording specific types of transactions, such as sales or purchases, to increase efficiency.

Purchases Journal

A specialized accounting journal used to record all purchases of goods and services on credit.

Cash Receipts Journal

A specialized accounting journal used to record all receipts of cash.