When Searching for Unrecorded Liabilities at the End of an Accounting

question 55

Multiple Choice

When searching for unrecorded liabilities at the end of an accounting period,the accountant would search all of the files except

• A)the purchase requisition file
• B)the cash receipts file
• C)the purchase order file
• D)the receiving report file

---

Definitions:

Forward Rates

Interest rates or exchange rates fixed now for financial transactions that will occur at a future date.

Home Currency Approach

A method of assessing an international investment by converting all foreign currencies involved into the investor’s domestic or "home" currency.

Spot Rate

The ongoing market rate at which a certain currency is available for buying or selling for immediate dispatch.

Unbiased Forward Rate

Theoretically, a forward rate in the currencies market that is equal to the spot rate adjusted for interest rate differentials, without any prediction of future direction.