A Realised Exchange Difference Arises

question 5

Multiple Choice

A realised exchange difference arises:

• A) when the exchange rate changes between initial recognition and cash settlement.
• B) when the exchange rate changes between initial recognition and end of reporting period.
• C) on remeasurement of a monetary liability at the end of the reporting period.
• D) on initial recognition of a monetary asset.

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Definitions:

Labor Rate Variance

The difference between the actual cost of labor and the budgeted or standard cost, based on the labor rate.

Actual Rate

A term that can refer to the real, observed interest rate, exchange rate, or other financial variable in contrast to a theoretical or estimated rate.

Standard Hours

The expected time it should take to complete a specific task or produce a given quantity of goods under normal conditions.

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders.