5.Will a company use the same exchange rate when translating ,Assets ,Liabilities,Revenues and Expenses? Explain

Q: Why would it be useful to examine a countries balance-of-payment data?

A: The balance of payment for a country is the net amount of money that flows into and out of the…

Q: why do exporters and importers use bill of exchange?

A: A bill of exchange is a written order that binds one party to pay another party a predetermined sum…

Q: How does accounting provide useful information about economic activities?

A: Whenever a company wants to make decisions that include money that decision comes under the economic…

Q: 1) What is Balance of Payments? What are the major components of BOP? Explain.

A: Balance of payments is a method or statement that represents all the international monetary…

Q: U.S. GAAP accounting different from

A: International Financial reporting standards: IFRS can be defined as set of accounting standards used…

Q: 1. Discuss the similarities between money and currency.  2. Explain the difference between money and…

A: Money and Currency are often used interchangeably in the general world however when they are looked…

Q: will bills  payable given to creditors affect the current ratio?

A: Current ratio is the ratio of Current Assets to Current Liabilities.  Current ratio = Current…

Q: Which of the following should be classified as financial instrument? Inventories C. Patents B.…

A: IAS 32 defines financial instrument as a "  contract that gives rise to a financial asset of one…

Q: How do German firms use accounting reserves

A: The Handelsgesetzbuch (HGB) is Germany's business code and accounting rules for financial statement…

Q: How does the Trade notes payable differ from accounts payable?

A: Difference: Accounts payable is a short-term liability that is owed by the supplier to the creditor…

Q: How should exchange gains or losses resulting from foreign currency transactions be accounted for?…

A: Lets understand the basics. Foreign currency transaction are transaction which not made in home…

Q: Exchange differences arising from the translation of financial statements of a foreign operation…

A: When company has subsidiary in the foreign country than the assets and liabilities are to be…

Q: When, in the presence of exchange rate adjustments, there is a balance of payments deficit, this is…

A: The balance of payments is a statement that shows all the transactions which include the inflow and…

Q: The currency in which most of the inflows and outflows of the entity is denominated pertains to…

A: Transaction currency is the currency in which particular transaction is performed and it might be…

Q: DEFINITIONS 1. Open position 2. Transaction exposure report 3. Hedging 4. Transaction

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: What is the purpose of preparing trading and profit and loss account?

A: Trading Account The majority of the trading account is made up of credit and debit. Direct expenses…

Q: What factors determine a company's eligibility for trade credit?

A: Trade credit is a type of financing that allows a company to purchase goods or services from a…

Q: How is cash-basis accounting different from accrual-basis accounting?

A: Cash basis accounting is the simple and effective method where only cash transactions are recorded.…

Q: D6) Finance What are the costs of extending trade credit? (Be specific please)

A: Trade credit is the credit or kind o loan given to the customers of the business for delaying the…

Q: closing net trade receivables

A: An allowance for bad debt is a valuation account used to estimate the amount of a…

Q: Which factor explaining why accounting practices differ across countries do you think is most…

A: Seven factors for difference in accounting practices across countries 1.Legal system (a) Common law…

Q: Which of the following is part of the payments system of the economy? A. currency B. demand deposits…

A: A payment system is any mechanism that settles banking transactions by transferring monetary value.…

Q: If a company has accounts receivable from ordinary customers and from related parties, can they…

A: International Financial Reporting Standards are known as the accounting standards which is issued by…

Q: How is Accounting affected by Digital Currencies?

A: Digital Currency: It is a currency which can't be seen or touched but stored, managed and exchanged…

Q: What single document stands in the center of international commercial transactions? Question 2…

A: It refers to the exchange of goods, services, or capital across national borders. These transactions…

Q: which shall be recognized for each item when foreign currency gain or loss that arises from…

A: Foreign Currency Translation: It is the process of converting one currency into another, which is…

Q: What is the relation of harmonization in international accounting

A: In accounting each country follows different types of accounting practices and standards.…

Q: Explain revenue recognition concepts under the US GAAP rule

A: Lets understand the basics. In US GAAP revenue recognition refers to recongition of revenue in the…

Q: Compare and contrast transaction exposure and economic exposure

A: SOLUTION:- Transaction exposure is the danger a MNC faces when it executes a particular exchange…

Q: 5. Discuss the approaches a company might take when issuing financial reports to users in foreign…

A: Financial Reports:- These are statements prepared at the end of the financial year to know the…

Q: What is the differ

A: A credit memorandum stand for credit memorandum when a contributor's withdrawal from his bank…

Q: Exchange differences in translating financial statements are recognized in profit or loss, while…

A: Exchange Differences - It is the difference translating of one currency unit to another currency at…

Q: How can they say that both MONEY & CURRENCY are a medium of exchange ,  unit of account , portable ,…

A: Currency may be a quite payment which will be wont to buy and sell products and services. during a…

Q: Profit on exchange differences, arising on transaction of foreign operations are classified as: a.…

A: Introduction: Foreign exchange: Buying and selling of foreign currencies , entering in to the…

Q: Explain what a currency instrument is? Give examples of such currency instrument

A: Currency Instrument - Currency Instruments are those Instrument which is used globally for the…

Q: Do U.S. GAAP and IFRS differ in the criteria they use to determine whether a transfer of receivables…

A: International Financial Reporting Standards: They are commonly known as IFRS. It is a set of…

Q: In which group are the liabilities of the company with and without bill arising from relations with…

A: Any liability of the business which is being payable to third party and Main purpose of these…

Q: Define each following terms: p. American depository receipts (ADRs); repatriation of earnings

A: “Since you have asked multiple questions, we will solve the first question for you. If youwant any…

Q: nstrument is used by the exporter and nporter to fulfill their short term nancial requirement?

A: Banks provide credit to the business for import and export.

Q: What accounting challenges do international commerce (imports and exports) provide for a business

A: Introduction : International business refers to the selling and purchase of products and services…