EXAM CODE $01$

$16.$ The following are the primary factors to consider in the determination of the currency of the primary economic environment except currency $q,$

A$.$ in which receipts from operating activities are retained

B$.$ that mainly influences the price at which goods and services are sold

C$.$ of the country whose competitive forces and regulations mainly influence the entity's pricing structure.

D$.$ influences the costs of the entity

Use the information below to answer question $17$ and $18.$

An entity purchases equipment from a foreign supplier for $$6$ million on March $31,2022,$ when the exchange rate was $$1=GH!in8.$ The entity also sells goods to a foreign customer for $$3\mathrm{.}5$ million on April $30,2022,$ when the exchange rate was $$1=GH88\mathrm{.}50.$ At the entity's year$-$end of May $31,2022,$ the amounts have not been paid. The closing exchange rate was $$1=GH8\mathrm{.}80.$ The entity's currency of the primary economic environment is the Ghana Cedi $($GH$).$

$17.$ The initial entries on March $31,2022,$ are

A$.$ Dr$.$ PPE$/$Equipment $$6$ million; Cr$.$ Payaures $$0$ million

B$.$ Dr$.$ PPE$/$Equipment GH$0\mathrm{.}75$ million; Cr$.$ Payables GH$0\mathrm{.}75$ million

&$.$ Dr$.$ PPE$/$Equipment GH$6$ million; Cr$.$ Cost of Sales GH$6$ million

D$.$ Dr$.$ PPE$/$Equipment GH$48$ million; Cr$.$ Payables GH$48$ million

$18.$ The initial entries on April $30,2022$ are $q,$ &$4.$ Dr$.$ Receivables $$3\mathrm{.}5$ million; Cr$.$ Revenue $$3\mathrm{.}5$ million. million.

C$.$ Dr$.$ Receivables GH&$29\mathrm{.}75$ million; Cr$.$ Revenue GH&$29\mathrm{.}75$ million.

D$.$ Dr$.$ Receivables GH$0\mathrm{.}41$ million; Cr$.$ Revenue $GH!in0\mathrm{.}41$ million.

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$6$

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EXAM CODE $01$

$19.$ Are the following statements about the recognition of exchange differences in respect of foreign currency transactions reported in an entity's functional currency true or false according to IAS$21?$

$(1)$ Any $$xchange difference on the settlement of a monetary item should be recognised in profit or loss.

$(2)$ Any exchange difference on the translation of a monetary item at a rate different to that used at initial recognition should be recognised in other comprehensive income.

Statement $(1)$ Statement $(2)$

A$.$ False False

B$.$ False True

C$.$ True False

$-$B$.$ True True

$20.$ Dividend Yield is the percentage of the gross dividend to the market price. The dividends are grossed up to show the amount including tax where applicable.

A$.$ True

$-B.,$ False