Entity X based in one country (currency $) bought goods from Entity Y in another country (currency
Question:
Entity X based in one country (currency $) bought goods from Entity Y in another country (currency :) for :300,000 on 1 May 20X1. The spot rate on that date was $1 =
:1. As at 31 December 20X1, the balance sheet date, Entity X had not yet paid for the goods. The spot rate on 31 December 20X1 was $1 = :1.5.
At what amount should the purchases and payables figures be shown in the financial statements of Entity X?
Purchases Payables A. $300,000 $300,000 B. $200,000 $300,000 C. $300,000 $200,000 D. $300,000 $450,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Financial Accounting An International Introduction
ISBN: 9781292102993
6th Edition
Authors: David Alexander, Christopher Nobe
Question Posted: