- Sample Homework
- Multicurrency feature
Which 2 statements are correct with regards to the Multicurrency feature within QuickBooks Online?(Select all that apply)
- You can choose to fix rates for any currency of your choosing permanently
- If the home currency needs to be changed from US dollars to euros, you are able to edit that setting
- Once Multicurrency has been enabled, you cannot disable this feature
- If a customer has been set up as US dollars, you can edit that customer to be a euro customer if no transactions have been made against them
- For most of the commonly used currencies, the rates are updated every four hours
Which 2 statements are true regarding the Multicurrency function in QuickBooks Online?(Select all that apply)
- You can invent a currency belonging to an imaginary country for practice purposes
- You can view a list of a foreign currency’s historical exchange rates used for review
- Exchange rates are expressed as the number of foreign units it takes to equal one home currency unit
- Balance Sheet accounts that existed prior to turning on Multicurrency are assigned the home currency
- Once you’ve added a transaction in a foreign currency, you cannot delete the currency used from the list
Which 3 transactions can lead to a gain or loss on foreign exchange when dealing with foreign currency transactions?(Select all that apply)
- Pay a bill
- Enter a bill
- Enter an invoice
- Receive payment on an invoice
- Deposit an invoice payment into a bank account
The General Ledger is adjusted as a result of the home currency revaluation.
Which 3 accounts can be affected?(Select all that apply)
- Credit card
- Accounts Receivable
- Accounts Payable
- Current Bank Account
- Savings Bank Account
You are reviewing your client’s Multicurrency company Balance Sheet, and the balance as of the previous fiscal year-end for their Canadian bank account, which they closed last year, is a $10 debit balance in US dollars (the home currency). However, the Canadian dollar balance correctly indicates the account has been closed.
Why would this be the case?(Select all that apply)
- You have to create a journal entry debiting foreign exchange gain or loss $10 and crediting the Canadian bank account $10.
- The Canadian bank account has not been reconciled as of the last fiscal year.
- The Balance Sheet shows the cumulative balance of the account in the home currency based on the home currency value of each of the transactions using the exchange rate that appears on each screen.
- You have to perform a home currency adjustment for the Canadian bank account as of the current date.
- You have to perform a home currency adjustment for the Canadian bank account as of the last fiscal year.
Which 2 statements are true about home currency adjustments?(Select all that apply)
- Home currency adjustments always affect accounts receivable as an unrealized gain (Incorrect) Home currency adjustments affect bank accounts as a realized gain or loss (Correct) Home Currency adjustments appear as journal entries and certain lines can appear as $0.00
- Home currency adjustments always affect accounts receivable as an unrealized gain
- Home currency adjustments affect bank accounts as a realized gain or loss
- Amounts for Accounts Payable and Receivable lines in Home Currency Adjustments appear as $0.00