Accounting of Transactions of Foreign Currency MCQ | (Free Resource)
21. The exchange rate at the balance sheet date is known as
(a) Average Rate
(b) Closing Rate
(c) Non-monetary Rate
(d) Monetary Rate
22. Reporting currency is the currency used
(a) In recording the financial transactions
(b) In presenting the financial statements
(c) In settling the financial transactions
(d) None of the above
23. Foreign currency is a currency
(a) Used in recording the foreign transactions
(b) Used in presenting the foreign financial statements
(c) Other than the reporting currency of an enterprise
(d) Other than the Indian Rupee
24. Non-monetary items
(a) Are the items exchanged at fair value
(b) Are the items other than assets and liabilities
(c) Are assets and liabilities other that monetary items
(d) None of the above
25. Monetary items
(a) Are assets and liabilities to be received or paid in money
(b) Are assets to be received in fixed or determinable amounts of money
(c) Are money held and assets and liabilities to be received or paid in fixed or determinable amounts of money
(d) None of the above
26. An exchange difference results
(a) When there is a change in the exchange rate between the transaction date and the date ofsettlement of any non-monetary items arising from a foreign currency transaction
(b) When there is a change in the fair value rate between the transaction date and the date ofsettlement of any monetary items arising from a foreign currency transaction
(c) When there is a change in the exchange rate between the transaction date and the date ofsettlement of any monetary items arising from a foreign currency transaction
(d) None of the above
27. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency should be reported using the exchange rate at the date of the
(a) Balance Sheet
(b) Transaction
(c) Settlement
(d) None of the above
28. The contingent liability denominated in foreign currency at the balance sheet date is disclosed by using the
(a) Average Rate
(b) Closing Rate
(c) Non-monetary Rate
(d) Monetary Rate
| Answer: 21)Closing Rate 22)In presenting the financial statements 23)Other than the reporting currency of an enterprise 24)Are assets and liabilities other that monetary items 25)Are money held and assets and liabilities to be received or paid in fixed or determinable amounts of money 26)When there is a change in the exchange rate between the transaction date and the date ofsettlement of any monetary items arising from a foreign currency transaction 27)Transaction 28)Closing Rate |
