Practice Test

Q1) The mean of the exchange rates in force during a period is known as Show Answer

Q2) The exchange rate at the balance sheet date is known as Show Answer

Q3) Reporting currency is the currency used Show Answer

Q4) Foreign currency is a currency Show Answer

Q5) Non-monetary items Show Answer

Q6) Monetary items Show Answer

Q7) An exchange difference results Show Answer

Q8) Non- monetary items which are carried in terms of historical cost denominated in a foreign currency should be reported using the exchange rate at the date of the Show Answer

Q9) The contingent liability denominated in foreign currency at the balance sheet date is disclosed by using the Show Answer

Q10) _________ is the mean of the exchange rates in force during a period. Show Answer

Q11) ________ is the exchange rate at the balance sheet date. Show Answer

Q12) ____ difference is the difference resulting from reporting the same number of units of a foreign currency in the reporting currency at different exchange rates Show Answer

Q13) ______ rate is the ratio for exchange of two currencies Show Answer

Q14) ___ Value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction. Show Answer

Q15) Foreign Currency is a currency other than the ____currency of an enterprise. Show Answer

Q16) _______ items are money held and assets and liabilities to be received or paid in fixed or determinable amounts of money. Show Answer

Q17) ______ items are assets and liabilities other than monetary items. Show Answer

Q18) _____ Currency is the currency used in presenting the financial statements. Show Answer

Q19) Non-monetary items which are carried in terms of historical cost denominated in a foreign currency should be reported using the exchange rate at the date of the ___. Show Answer

Q20) Cash, receivable, and payable are examples of____ items. Show Answer

Q21) Fixed assets, inventories, and investments in equity shares are examples of ________items. Show Answer

Q22) A foreign currency transaction should be recorded, on initial recognition in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the ________. Show Answer

Q23) The contingent liability denominated in foreign currencyat the balance sheet date is disclosed by the _______ rate. Show Answer

Q24) Non-monetary items which are carried in terms of historical cost denominated in a foreign currency should be reported using the exchange rate at the date of the balance sheet. Show Answer

Q25) Cash, receivables and payable are examples of non-monetary items. Show Answer

Q26) An inventory is a non-monetary item. Show Answer

Q27) A foreign currency transaction should be recorded, on initial recognition in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the recording. Show Answer

Q28) Average rate is the mean of the exchange rates on the first day and the last day of the accounting year. Show Answer

Q29) Closing rate is the exchange rate at the close of the day on which a transaction takes place. Show Answer

Q30) Exchange rate is the rate at which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction. Show Answer

Q31) Foreign Currency is a currency other than the Indian rupee. Show Answer

Q32) Monetary items are defined by AS 11 as assets and liabilities other than non-monetary items Show Answer

Q33) Reporting currency means the Indian Rupee used in presenting the financial statements of Indian Companies. Show Answer

Q34) Reporting currency is the currency used in recording the financial transactions. Show Answer

Q35) Exchange difference is the difference resulting from reporting the same number of units of a foreign currency in the reporting currency at a particular exchange rate. Show Answer

Q36) Exchange difference is the difference resulting from reporting the different number of units of a foreign currency in thereporting currency at different exchange rates Show Answer

Q37) Exchange difference is the difference resulting from reporting the same number of units of a foreign currency in the reporting currency at the average exchange rates. Show Answer

Q38) Exchange difference is the difference resulting from reporting the same number of units of a foreign currency in the reporting currency at the closing exchange rates. Show Answer

Q39) A foreign currency transaction arises when an enterprise buys or sells goods or services whose price is denominated in the reporting currency. Show Answer

Q40) Non-monetary items which are carried in terms of fair value denominated in a foreign currency should be reported using the exchange rate at the date of the transaction. Show Answer

Q41) ______ is the ratio for exchange of two currencies. Show Answer

Q42) Conversion of currency is covered in AS. Show Answer

Q43) Following is a monetary item except Show Answer

Q44) The balance in receivable as on the date of balance sheet is converted at rate ____. Show Answer

Q45) On 1st january,2007 A Ltd. Purchased goods with 2,000 $ on 30th march,2007 A made the payment. The exchange rate on 1/1/07 is Rs.49 and on 30/03/07 Rs.47.60. the amount transferred to P & L A/c Show Answer

Q46) The depreciation on fixed assets is converted at rate Show Answer

Q47) Nasik Ltd export goods worth $5,000 on 27th nov,2007 and payment received on 12th jan,2008. the exchange rate 27th Nov,07- Rs.47.0031st Dec,07-Rs.46.5012th Jan,08-Rs.48.00on 31st Dec,07 debtor's A/c will be? Show Answer

Q48) The interest accrued on loan as on date of balance sheet is converted at rate on date of_______ Show Answer

Q49) The exchange rate at the balance sheet date is known as Show Answer

Q50) The exchange difference arising due to import of raw material is transferred to_________ Show Answer

Q51) Foreign currency is a currency Show Answer

Q52) On 1/1/08 XYZ Ltd invoiced goods to its USA client for $10,000 @ 1$ = 41 payment was received on 1/3/08 $1=Rs.40 the amount of difference in exchange transferred to P & L A/c is______ Show Answer

Q53) Monetary items Show Answer

Q54) A long-term loan was obtained from Z Ltd Rs.20,00,000 which was recorded at $1=Rs.36.20, the rate on the date of the transaction. The exchange rate on the balance sheet date was $1=Rs.37.40. The loss due to exchange difference is________ Show Answer

Q55) Non-monetary items are valued at________ Show Answer

Q56) _______ Accounting standard deals with foreign exchange. Show Answer

Q57) Average rate is the rate Show Answer

Q58) Following is not an example of a monetary item Show Answer

Q59) On 1st march, 2003 Ram ltd. purchased machinery with $50,000 exchange rate is Rs.48.75 and on 31st march, 2003 exchange rate is Rs.49.00. The machinery A/c Show Answer

Q60) Non-monetary items are the items________ Show Answer

Q61) The mean of the exchange rates in force during a period is known as Show Answer

Q62) As applicable for translation of foreign currency is Show Answer

Q63) Reporting currency is the currency used Show Answer

Q64) At the end of the year the balance on foreign exchange fluctuation A/C is transferred to___ Show Answer

Q65) The contingent liability denominated in foreign currency at the balance sheet date is disclosed by using the Show Answer

Q66) The interest of loan is converted at rate on the date________ Show Answer

Q67) the amount of exchange difference is recorded in_______ Show Answer

Q68) The balance in exchange difference on transaction of export sale is transferred to________ Show Answer

Q69) following is an example of a non-monetary item Show Answer

Q70) The currency of the enterprise preparing account is called_________ Show Answer

Q71) An exchange rate on the date of balance sheet is known as________ Show Answer