Balance Sheet, Income Statement, & Comprehensive Statement

Question 1

Receivables collected in unearned services is considered ______ on the Balance sheet?

Answer 1

Liability

Question 2

Before settlement of the foreign exchange transaction, what is the entry created when the foreign exchange rate fluctuates?

Answer 2

A separate adjustment entry is created before settlement to denote a foreign exchange loss or gain. It would either reduce or add to the payable or receivable.

Question 3

How to quote an exchange rate using the direct method?

Answer 3

Quote the domestic price of one unit of another currency. For example, the quote should be __ current is equal to 1 U.S dollar.

Question 4

If a loss is projected on final disposition, how much of the operating losses be recognized?

Answer 4

The operating losses to be included would be the total year of operating losses, regardless of whether those losses occurred before or after the date the decision to dispose of the component was made.