Question

Question 6 (4 points)

Saved

All of the following are factors influencing the development of accounting except:

Question 6 options:

	a) Standard Setting Process
	b) Social and cultural values
	c) Geographic location
	d) Political and legal systems

Question 7 (4 points)

The types of journal entries encountered in government accounting include all of the following except:

Question 7 options:

	a) Operating entries
	b) Closing entries
	c) Budgetary entries
	d) Accrual entries

Question 8 (4 points)

A current rate of exchange between two currencies is known as the:

Question 8 options:

	a) Average Rate
	b) Spot Rate
	c) Forward Rate
	d) Floating Rate

Question 9 (4 points)

Company F is a foreign subsidiary of a domestic company and Company F’s functional currency is the Euro. On Company F’s financials at the end of the year 2018, they reported €200,000 in cost of goods sold. If the spot rate on 1/1/18 was €1 = $1.12, the spot rate on 12/31/18 was €1 $1.18, and the weighted average rate for the full year 2018 was €1 = $1.02, how much is the translated balance of cost of goods sold in U.S. $ at year-end?

Question 9 options:

	a) $224,000
	b) $204,000
	c) $200,000
	d) $236,000

Question 10 (4 points)

Company ABC is a foreign subsidiary of a domestic company and Company ABC’s functional currency is the Euro. On Company ABC’s financials at the end of the year 2019, they reported €50,000 in inventory. If the spot rate on 1/1/19 was €1 = $1.15, the spot rate on 12/31/19 was €1 $1.06, and the weighted average rate for the full year 2019 was €1 = $1.10, how much is the translated balance of inventory in U.S. $ at year-end?

Question 10 options:

	a) $57,500
	b) $53,000
	c) $50,000
	d) $55,000

Answer 1

Answer :

(6). Option (C) Geographic location

Explanation : There is no impact of Geographical location on the development of accounting

(7). Option (D) Accrual Entries

Explanation : The accrual entries are not part of government accounting. we use only the opertating. Budgeting and closing entries.

(8). Option (D) Floting Rate

Explanation : Current rate of exchange between two currencies is exchange rate and floting rate is type of exchange rate.

(9). Option (D) $236,000

COGS =  €20000

Sport rate on 31.12.18 = $1.18

COGS in UDS = 20000*1.18

$236000.

(10). Option (B) $53,000

Inventory = € 50000

Sport rate on 31.12.19 = $1.06

COGS in UDS = 50000*1.06

= $53000.