Cash flows arising from transaction in a foreign currency should be recorded in an enterprise's reporting currency by applying to the foreign currency amount, the exchange rate ……………

CS Executive · Corporate and Management Accounting · PYQS · December 2024
Cash flows arising from transaction in a foreign currency should be recorded in an enterprise's reporting currency by applying to the foreign currency amount, the exchange rate ……………
(A) prevailing at the beginning of the financial year
(B) that is average rate
(C) prevailing at the end of the financial year
(D) prevailing at the date of the cash flow

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Cash Flow Statement

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