1. If $1.5625 can be exchanged for 1 British pound, the direct and indirect exchange rate quotations...

Question:

1. If $1.5625 can be exchanged for 1 British pound, the direct and indirect quotations are:
(a) $1.5625 and 1 British pound, respectively
(b) $1.5625 and 0.64 British pounds, respectively
(c) $1.00 and 1.5625 British pounds, respectively
(d) $1.00 and 0.64 British pounds, respectively
2. A U.S. firm purchases merchandise from a Canadian firm with payment due in 60 days and denominated in Canadian dollars. The U.S. firm will report an exchange gain or loss on settlement if the transaction is:
(a) Recorded in U.S. dollars
(b) Measured in U.S. dollars
(c) Not hedged through a forward contract
(d) Settled after an change has occurred
3. Exchange gains and losses on and payable that are denominated in a foreign currency are:
(a) Accumulated and reported upon settlement
(b) Deferred and treated as transaction price adjustments
(c) Reported as equity adjustments from translation
(d) Recognized in the periods in which exchange rates change

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...