Question: When the exchange rate for a foreign currency increases between a purchase and a payment the payment amount is set by the exchange rate at

When the exchange rate for a foreign currency increases between a purchase and a payment the payment amount is set by the exchange rate at the time of the purchase the difference between the two rates is debited to the asset or expense account for the purchase the difference between the two rates is credited to the linked expense account for tracking exchange rate differences the difference between the two rates is debited to the linked expense account for tracking exchange rate differences

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Please answer the following Accounting Sage related questions. 1. 2 3 4 Debit card payments in a sales invoice with regular terms of net 30 will - a. debit the bank account instead of accounts...

need answer with explanation for sage 50 accounting Regarding a purchase from a foreign vendor, when the exchange rate for a foreign currency increases between a purchase and a payment - a. the...

When you set up payroll remittances, the Balance Forward amounts - a. are the same as the opening trial balance liability amounts for that date b. are the same as the opening trial balance expense...

help me draw the conclusion (5)part i have included my other part of works . Derivatives Instruments - Both OTC & Exchange Traded A derivative is derived from an underlying asset or group of assets....

Please answer following sage accounting questions. i: ii: iii: iv: When the exchange rate for a foreign currency changes between a sale and the receipt of payment - a. the amount of revenue is the...

Hi can i get a detailed calculation for : Current ratio,quick ratio,receivable turnover,return on ordinary shareholders equity,return on assets for 2019 and 2018. below i have provided the financial...

QuestionCompany 1 and 2 The meaning/interpretion of each ratio calculated Asset efficiency 1.Asset turnover ratio 2.Days inventory turnover period 3.Days debtors turnover period 4.Days creditors...

When the exchange rate for a foreign currency changes between a sale and the receipt of payment - Select one: the amount of revenue is the average of the two exchange rates the amount of revenue is...

Considering Jims interest in his trade secrete, how could he have drafted a legally enforceable restrictive covenant?

What is the major weakness of the scattergraph, or visual-fit, method of analyzing mixed costs?

If debt financing is used in a for profit corporation, more of a firms operating income is available for distribution to investors ( owners and creditors ) . The additional available operating income...

Gusler company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $98,000 per quarter. The company allocates these...