Deck29

Question 1

For Forward Contracts entered into for Speculative purposes, which exchange rate is used to measure the contracts prior to maturity? (a) Spot Rate (b) Forward Rate (c) Both

Answer 1

(b) Forward Rate

Question 2

The currency that the financial statements are presented in is the:

Answer 2

Reporting Currency

Question 3

The Functional Currency could be (a)the recording currency of the foreign entity (b)the reporting currency of the parent (c)both

Answer 3

(c)both

Question 4

What constitutes a highly inflationary economy?

Answer 4

Inflation of 100% or more over the past 3 years

Question 5

Under Remeasurement, the “Translation Adjustment” is reported where?

Answer 5

Income from Continuing Operations

Question 6

Extraordinary Items that happened in the Second Quarter should be:

Answer 6

Recognized in the second quarter