According to AASB 121 the Effects of Changes in Foreign

question 11

Multiple Choice

According to AASB 121 The Effects of Changes in Foreign Exchange Rates, the currency in which an entity primarily generates and expends cash is considered to be the:

• A) economic currency;
• B) domestic currency;
• C) presentation currency;
• D) functional currency.

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Definitions:

Conversion Rate

The percentage of users who take a desired action, such as making a purchase or signing up for a newsletter.

Zero Coupon Bond

A bond that does not pay periodic interest but is issued at a discount from its face value and matures at that face value, effectively creating a fixed rate of return.

Equity

The value of an ownership interest in a company, represented by the share of assets after all liabilities have been deducted.