al Currency, Functional Currency and Pre

Q: Define commodity IT asset.

A:

Q: Describe stakeholder orientation at REI.

A: Introduction: A stakeholder is a person that has an interest in a company and has the ability to…

Q: Define Economic entity assumption.

A: Economic entity assumption is an accounting principle that separates the  transactions carried out…

Q: of computing vat payable

A: VAT refers to the type of tax imposed by the government over the sale of goods and services.

Q: Define currency manipulator

A: Answer: Currency manipulator means a mark or a label given by US government departments, including…

Q: What is the relationship between future exchange and clearinghouse?

A: Future exchange and clearing house are two different parts of future markets.

Q: Define Net realizable value.

A: Net realizable value is the expected cash to be received against a given asset.  Thus, Net…

Q: Explain the asset channel of monetary policy and analyze its usefulness in the country

A: The question is based on the concept of asset price channel in monetary policy of a country

Q: What is Eurobond?

A: Eurobond It is a debt instrument that is designated in money other than the nation's home cash or…

Q: Describe Trade-Off theory.

A: Trade-Off theory suggests that there is an optimal capital structure that maximizes the value of the…

Q: Which of the following is part of the payments system of the economy? A. currency B. demand deposits…

A: A payment system is any mechanism that settles banking transactions by transferring monetary value.…

Q: Define net realization value?

A: Net realizable value means the amount that could be received after deducted all incidental expenses…

Q: Discuss the following models in relation to purchasing power parity.

A: Comparative rates of inflation in different countries are the factors influencing the exchange rate.…

Q: Define Monetary/non-monetary method

A: Monetary and Non-Monetary Method Monetary Assets/Liabilities - Assets/Liabilities whose value…

Q: Define Realizable (settlement) value

A: Realizable settlement value in case of liabilities is considered to be equal to the settlement…

Q: Which of the following is NOT an indicator used in determining the functional currency? • a.…

A: A practical foreign money is the primary foreign money that a agency conducts its business. As…

Q: How can we establish economic equivalence by selecting the base period?

A: Answer: There is economic equivalence between cash flows which have the same economic influence and…

Q: Give a detailed answer to the theoretical question Display graphically and explain the mechanism of…

A: Bills of exchange indicate a written agreement stating the obligation of one party to pay the due…

Q: How is the term ‘net realizable value’ defined as used in the acronym LCNRV?

A: Inventory: It implies the current asset that is presented on the balance sheet of the company and…

Q: Explain assumptions related to monetary unit?

A: As per the money measurement assumptions, only quantifiable transactions are recorded in the books…

Q: Define the term neutral money.

A: Economics: Economics refers to the social science that deals with the production, distribution and…

Q: Explain consignment arrangement with example.

A: Goods in transit: Goods in transit can be described as the inventories which are shipped by the…

Q: Explain an example of net realizable value.

A: Net realizable value:   Net realizable value is the net amount of receivables which a business…

Q: . What is the economic and political environment in which standard setting occurs?

A: Definition: Accounting is primarily concerned with identifying, recording, measuring, summarizing…

Q: Explain how to calculate net realizable value.

A: Net realizable value refers to the total amount of money which a company will get from selling the…

Instruments of Foreign Exchange Market

Foreign exchange is a worldwide market in which one nation’s currency is converted into another nation’s currency. In further terms, exchanging of nations currency with foreign currencies. Foreign exchange happens at a specified rate which is termed the foreign exchange rate. The exchange rates are not constant continuously changing as they are derived by market forces of supply and demand. Widely used foreign currencies are the United States- dollar, Euro, Japanese Yen, British pound, and Australian dollar. US- dollar is the most denominated foreign currency. The Euro to US dollar is a widely used currency pair in the forex market as these two currencies represent the world’s enormous economy. Forex trade is simple as exchanging currencies at the bank. The main players of forex markets are the central banks, financial institutions, intermediaries, investments banks, and other banks. Central Bank is the supreme player who decides the currency value of their own nation on the forex market. Mostly foreign exchange-traded at FX market (forex market) when tourists’ visits a foreign country, import, and export happens between two countries.