Question

When can a revised rate of exchange be used for accounting in foreign currencies?

a.

At the beginning of the year

b.

When there is a fluctuation of more than 5% in the exchange rate

c.

When there is a fluctuation of more than 10% in the exchange rate

d.

At the end of the year

Answer: (c).When there is a fluctuation of more than 10% in the exchange rate Explanation:If there is a fluctuation of more than 10% in the exchange rate of any currency during the year, an option is provided to use a revised rate of exchange for all transactions from that date.

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