Question

Which statement is not correct? Ο Ο A foreign currency receivable or payable must be restated at the current exchange rate at the balance sheet date Ο Any exchange gain or loss on a foreign currency receivable or payable is recorded in income. Ο Both are correct Ο Neither is correct

Answer 1

A foreign currency payable or receivable will require settlement in a breign currency, which keeps fluctuating every now and then. Great fortni * The rates of recording Settlement. are different at the time and at the time of donat & In order to to adjust balance sheet adjust that we have revivables and payables date. on * The difference amount should be Charged to gair con loss on foreign Currency payable con venivables. Answer: Both are correct