Government Accounting L8 Foreign Exchange Rates

Question 1

It is the spot exchange rate at the reporting date.

Answer 1

Closing rate

Question 2

It is the difference resulting from translating a given
number of units of one currency into another currency at different exchange
rates.

Answer 2

Exchange difference

Question 3

It is the ratio of exchange for two currencies.

Answer 3

Exchange Rate

Question 4

It is the currency other than the functional currency of the
entity.

Answer 4

Foreign Currency

Question 5

They are transactions that are denominated and require
settlement in foreign currency

Answer 5

Foreign Currency Transactions

Question 6

It is the currency of the primary economic environment in which the
entity operates.

Answer 6

Functional Currency

Question 7

They are units of currency held and assets and liabilities to be received or
paid in a fixed or determinable number of units of currency.

Answer 7

Monetary items

Question 8

They are items which essential feature is the absence of a right to receive
(or an obligation to deliver) a fixed or determinable number of units of currency.

Answer 8

Non-Monetary items

Question 9

foreign currency transaction shall be recorded, on initial recognition
in the —, by applying to the — amount
the — between the functional currency and the foreign
currency at the —.

Answer 9

functional currency
foreign currency
spot exchange rate
date of the transaction