University of Belize Advance Accounting Test –APR 2014 Multiple choices (2 pts each) Total of 20 points 1)The purchase price of an option contract is typically recorded as a)An expense. b)An asset. c)An amortized cost. d)A component of shareholders equity 2)Several rate mechanisms are used around the world. Which of the following is employed by most of the Eastern Caribbean States : 3)A U.S. importer that purchased merchandise from a South Korean firm would be exposed to a net exchange gain on the unpaid balance if : 4)When the billing for a U.S. company's sale to a company in a foreign country is denominated in U.S. dollars, ________ is required when preparing journal entries for the sale. 5)Gains or losses on foreign currency transactions are recorded before the related receivable or payable is settled when a) The government cannot set an exchange rate for the foreign currency. b) The foreign currency is unknown. c) The fiscal year ends after the settlement of the receivable or payable. d) The fiscal year ends before the settlement of the receivable or payable
University of Belize Advance Accounting Test –APR 2014 6)A direct quote for the U.S. dollar is given at $1.45 per 1 foreign currency unit (fcu). The respective indirect quote for the U.S. dollar would be reported as
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- Fall '17