Financial accounting is shaped to a significant extent, by the environment, and in particular all of the following, except Select the correct response: The means of measuring economic activity The overall organization of economic activity in society The many uses and users which it serves The characteristics and limitations of financial accounting and financial statements

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Financial accounting is shaped to a significant extent, by the environment, and
in particular all of the following, except
Select the correct response:
The means of measuring economic activity
The overall organization of economic activity in society
The many uses and users which it serves
The characteristics and limitations of financial accounting and
financial statements
Statement 1 - A foreign currency transaction is initially recognized by
translating the foreign currency amount into the functional currency using the
spot exchange rate at the date of the transaction.
Statement 2- An entity is required to present its financial statements using its
presentation currency (i.e., Philippine pesos). However, whenever needed, the
entity may translate its financial statements into any functional currency.
Select the correct response:
Both statements are incorrect
Only statement 1 is correct
Only statement 2 is correct
Both statements are correct
Transcribed Image Text:Financial accounting is shaped to a significant extent, by the environment, and in particular all of the following, except Select the correct response: The means of measuring economic activity The overall organization of economic activity in society The many uses and users which it serves The characteristics and limitations of financial accounting and financial statements Statement 1 - A foreign currency transaction is initially recognized by translating the foreign currency amount into the functional currency using the spot exchange rate at the date of the transaction. Statement 2- An entity is required to present its financial statements using its presentation currency (i.e., Philippine pesos). However, whenever needed, the entity may translate its financial statements into any functional currency. Select the correct response: Both statements are incorrect Only statement 1 is correct Only statement 2 is correct Both statements are correct
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