When Translating into the Presentation Currency the Translation Difference Is

question 17

Multiple Choice

When translating into the presentation currency the translation difference is recognised:

• A) in profit or loss
• B) as a separate component of equity
• C) in retained earnings
• D) as an asset or liability, depending on whether it is a debit or credit balance.

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Definitions:

Expenses

The costs incurred by a business or individual in the process of earning revenue.

Deposit in Transit

A sum of money transferred or sent to a bank account but not yet recorded in the account's available balance, often due to processing times.

Outstanding Check

A check that has been written by a company but has not yet been cashed or cleared by the bank.

Accounting Records

Documents and books that capture a company's financial transactions, including journals, ledgers, and financial statements.