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Question 1 Not yet answered Marked out of 2.00 Flag question The following are the foreign currency positions of a financial institution, expressed in the foreign currency. Assets Liabilities £13,415 £30,488 Currency British pound (£) Japanese yen (¥) Currency British pound (£) Japanese yen (Y) a. Gain is US $620 The exchange rate of dollar per British pound is 1.6400, and of dollars per yen is 0.0081060. The following are the foreign currency positions converted to dollars. Assets $50,000 $75,000 b. Loss is US $ -620 C. Od. ¥9,252,406 Loss is US $ -920 ¥3,700,962 Gain is US $ 990 What is the expected loss or gain if the Japanese ¥ exchange rate appreciates by 2 percent? State you answer in US $s. Foreign exchange purchased Foreign exchange sold £9,146 £12,195 Liabilities. $22,001 $30,000 ¥1,480,385 ¥10,856,156 Foreign exchange purchased Foreign exchange sold $14,999 $20,000 $88,000 $12,000 Question 1 Not yet answered Marked out of 2.00 Flag question The following are the foreign currency positions of a financial institution, expressed in the foreign currency. Assets Liabilities £13,415 £30,488 Currency British pound (£) Japanese yen (¥) Currency British pound (£) Japanese yen (Y) a. Gain is US $620 The exchange rate of dollar per British pound is 1.6400, and of dollars per yen is 0.0081060. The following are the foreign currency positions converted to dollars. Assets $50,000 $75,000 b. Loss is US $ -620 C. Od. ¥9,252,406 Loss is US $ -920 ¥3,700,962 Gain is US $ 990 What is the expected loss or gain if the Japanese ¥ exchange rate appreciates by 2 percent? State you answer in US $s. Foreign exchange purchased Foreign exchange sold £9,146 £12,195 Liabilities. $22,001 $30,000 ¥1,480,385 ¥10,856,156 Foreign exchange purchased Foreign exchange sold $14,999 $20,000 $88,000 $12,000
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College Accounting A Contemporary Approach
ISBN: 978-0073396958
2nd edition
Authors: David Haddock, John Price, Michael Farina
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