The Impact of Translating Transactions and Financial Statements from One

question 16

Multiple Choice

The impact of translating transactions and financial statements from one currency into another:

• A)is included in determining period profit or loss in both cases
• B)is normally included in period profit and loss for transactions, but for financial statements is recognised as other comprehensive profit and accumulated in a reserve called the foreign currency translation (FCT) reserve in chapter 24
• C)is normally included in period profit and loss for transactions, but is recognised as other comprehensive profit through retained profits for financial statements
• D)are both recognised directly as other comprehensive profit, with transactions recognised in retained profits and for financial statement in a reserve called the FCT reserve in chapter 24

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Definitions:

Cell References

Indicators or addresses that identify individual cells in a spreadsheet, and are used in formulas to reference specific data.

Constant Values

Fixed values in mathematics or computing that do not change.

Paste Button

A user interface element that allows users to insert text, data, or multimedia content previously copied or cut from another location.

Nonadjacent Location

Refers to cells or areas in a spreadsheet that are not next to each other but are selected or manipulated as a group.