Question: QUESTION 3 (20 marks) (a) ABC PLC, a Nigerian multinational company whose functional currency is Naira (N) with an accounting year-end of 31st December

QUESTION 3 (20 marks) (a) ABC PLC, a Nigerian multinational company whose

QUESTION 3 (20 marks) (a) ABC PLC, a Nigerian multinational company whose functional currency is Naira (N) with an accounting year-end of 31st December of each year sold raw materials on credit to XYZ Inc. of the United States of America for $50,000 on 1 April 2021, when the exchange rate was N410 = US$ 1. XYZ Inc. settled its account on 30th June 2021 when the exchange rate was N420=US$1. You are required to show the foreign currency gain or loss to ABC PLC by way of journal entries by following single transaction perspective and two-transaction perspective. (b) Discuss on the features of the major accounting classifications in the world.

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