{"id":3137,"date":"2024-03-05T15:43:59","date_gmt":"2024-03-05T15:43:59","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=3137"},"modified":"2024-03-05T15:43:59","modified_gmt":"2024-03-05T15:43:59","slug":"in-case-of-foreign-branch-the-current-assets-and-liabilities-should-be-converted-at","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/in-case-of-foreign-branch-the-current-assets-and-liabilities-should-be-converted-at\/","title":{"rendered":"In case of Foreign Branch the current assets and liabilities should be converted at :"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a97fef849f22\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"true\">\r\n                    Exchange Rate prevailing on last of the date the year.                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    Average Exchange Rate                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    Exchange Rate prevailing on the beginning date of the year                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    Specific Exchange Rate of SDR                     <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is (a).<\/p>\n<p>The current assets and liabilities of a foreign branch should be converted at the exchange rate prevailing on the last day of the year. This is because the exchange rate on the last day of the year is the most accurate reflection of the value of the foreign currency.<\/p>\n<p>The average exchange rate for the year is not as accurate because it does not take into account the fluctuations in the exchange rate throughout the year. The exchange rate prevailing on the beginning of the year is also not as accurate because it does not take into account the changes in the value of the foreign currency that have occurred since the beginning of the year. The specific exchange rate of SDR is not relevant because SDR is a unit of account that is not used in the conversion of current assets and liabilities.<\/p>\n<p>Here is a more detailed explanation of each option:<\/p>\n<p>(a) Exchange Rate prevailing on last of the date the year. This is the most accurate reflection of the value of the foreign currency because it takes into account the fluctuations in the exchange rate throughout the year.<\/p>\n<p>(b) Average Exchange Rate. This is not <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div>            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> as accurate because it does not take into account the fluctuations in the exchange rate throughout the year.<\/p>\n<p>(c) Exchange Rate prevailing on the beginning date of the year. This is also not as accurate because it does not take into account the changes in the value of the foreign currency that have occurred since the beginning of the year.<\/p>\n<p>(d) Specific Exchange Rate of SDR. This is not relevant because SDR is a unit of account that is not used in the conversion of current assets and liabilities.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>In case of Foreign Branch the current assets and liabilities should be converted at :<\/title>\n<meta name=\"description\" content=\"The current assets and liabilities of a foreign branch should be converted at the exchange rate prevailing on the last day of the year. 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This is because the exchange rate on the last day of the year is the most accurate reflection of the value of the foreign currency.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/in-case-of-foreign-branch-the-current-assets-and-liabilities-should-be-converted-at\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-03-05T15:43:59+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/in-case-of-foreign-branch-the-current-assets-and-liabilities-should-be-converted-at\/","url":"https:\/\/exam.pscnotes.com\/mcq\/in-case-of-foreign-branch-the-current-assets-and-liabilities-should-be-converted-at\/","name":"In case of Foreign Branch the current assets and liabilities should be converted at :","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-03-05T15:43:59+00:00","dateModified":"2024-03-05T15:43:59+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"The current assets and liabilities of a foreign branch should be converted at the exchange rate prevailing on the last day of the year. 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