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# Chapter 19

Problem I
1. Indirect Exchange Rates
Philippine Viewpoint:
1 \$ = P40; 1 Peso = \$0.025 (\$1/P40)
1 Singapore dollar = P32.00; 1 Peso = 0.03125 Singapore (1 Singapore Dollar/P32)

Peso P8,000
2. FCU = = = \$200; or
Direct Exchange Rate P40.00

## 3. 4,000 Singapore dollars x P32 = P128,000

Problem II
a. Exchange rates:
Arrival Date Departure Date

## 1 Singapore dollar = P33.00 1 Singapore Dollar = P32.50

Direct
Exchange Rate (P33,000 / 1,000 Singapore (P3,250 / 100 Singapore
dollars) dollars)

## P1.00 = .03 Singapore dollars P1.00 = .03 Singapore dollars

Indirect
Exchange Rate (1,000 Singapore dollars / (100 Singapore dollars /
P33,000) P3,250))

2. The direct exchange rate has decreased. This means that the peso has
strengthened during Mr. Alt's visit. For example, upon arrival, Mr. Alt had to pay P33
per each dollar. Upon departure, however, each dollar is worth just P32.50. This
means that the relative value of the peso has increased or, alternatively, the value
of the dollar has decreased.

3. The Philippine peso equivalent values for the 100 Singapore dollars are:

Arrival date
100 dollars x P33.00 = P3,300
Departure date
100 dollars x P32.50 = 3,250
Foreign Currency Transaction Loss P 50

Mr. Alt held dollars for a time in which the dollars was weakening against the peso.
Thus, Mr. Alt experienced a loss by holding the weaker currency.
Problem III
1. If the direct exchange rate increases, the peso weakens relative to the foreign
currency unit. If the indirect exchange rate increases, the peso strengthens relative to
the foreign currency unit.

2.

## Settlement Direct Exchange Rate Indirect Exchange Rate

Transaction Currency Increases Decreases Increases Decreases

Importing Peso NA NA NA NA
Importing L G G L
LCU
Exporting Peso NA NA NA NA
Exporting LCU G L L G

Problem IV
1.
December 1, 20x4 (Transaction date):
Purchases.. 973,200
Accounts payable (\$24,000 x P40.55) 973,200

## December 31, 20x4 (Balance sheet date):

Foreign currency transaction loss... 6,000
Accounts payable [\$24,000 x (P40.80 P40.55)] 6,000

## Accounts payable valued at 12/31 Balance Sheet

(\$24,000 x P40.80) P979,200
Accounts payable valued at 12/1 Date of Transaction
(\$24,000 x P40.55) 973,200
Adjustment to accounts payable needed.. P 6,000

## March 1, 20x5 (Settlement date):

Accounts payable 979,200
Foreign currency transaction gain [\$24,000 x (P40.80 P40.65)] 3,600
Cash (\$24,000 x P40.65). 975,600

2.
a.
a.1. None transaction date (December 1, 20x4)
a.2. P6,000 loss
a.3. P3,600 gain (March 1, 20x5)

b.
b.1. P979,200 spot rate on the balance sheet date or current rate on the balance sheet
b.2. P973,200 spot rate on the transaction date or historical rate on the balance sheet
date.

Problem V
1. December 1, 20x4 (Transaction date):
Accounts receivable (\$60,000 x P40.00) 2,400,000
Sales 2,400,000
December 31, 20x4 (Balance sheet date):
Accounts receivable.. 42,000
Foreign currency transaction gain [\$60,000 x (P40.70 P40.00)] 42,000

## Accounts receivable valued at 12/31 Balance Sheet

(\$60,000 x P40.70) P2,442,000
Accounts receivable valued at 12/1 Date of Transaction
(\$60,000 x P40.00) 2,400,000
Adjustment to accounts receivable needed.. P 42,000

## March 1, 20x5 (Settlement date):

Cash (\$60,000 x P40,60).. 2,436,000
Foreign currency transaction loss 6,000
Accounts receivable (\$60,000 x P40.70). 2,442,000

2.
a.
a.1. None transaction date
a.2. P42,000 gain
a.3. P6,000 loss (March 1, 20x5)

b.
b.1. P2,442,000 spot rate on the balance sheet date or current rate on the balance sheet
b.2. P973,200 spot rate on the transaction date or historical rate on the balance sheet
date.

Problem VI
The entries to record these transactions and the effects of changes in exchange rates are
as follows:

## November 1, 20x4 (Transaction date):

Equity investment (FVTPL)/Financial Asset 3,840,000
Cash 3,840,000
To record the purchase of shares in Pineapple Computers at a cost of
\$96,000 at the exchange rate of P40.

## December 10, 20x4 (Transaction date):

Equipment 636,000
Cash 636,000
To record the purchase of equipment costing 12,000 euros at the
exchange rate of P53.

## December 31, 20x4 (Balance sheet date):

Equity investment (FVTPL)/Financial Asset 1,020,000
Unrealized gain in fair value of equity investment (financial asset) 1,020,000
To record gain in fair value of Pineapple Computers share.

## 12/31/x4: Revalued Investment and translated at the rate on

the date of revaluation (closing/current rate):
(1,200 units x \$100 x P40.50). P4,860,000
11/1/x4: Investment, cost (1,200 units x \$80 x P40.00) 3,840,000
Unrealized gain on equity investment P1,020,000
Less: Foreign currency transaction gain equity investment
11/1/20x4: Date of transaction (1,200 units x \$80 x P40).. P3,840,000
Less: 12/31/20x4: B/S Date (1,200 units x \$80 x P40.50). 3,888,000 48,000
Other unrealized gain in the fair value of equity investment... P 972,000

## Foreign currency transaction loss... 19,200

Accounts payable [\$96,000 x (P53.20 P53)] 19,200
To record exchange loss on accounts payable in euros.

## Accounts payable valued at 12/31 Balance Sheet

(1,200 x \$80 x P53.20) 5,107,200
Accounts payable valued at 12/1 Date of Transaction
(1,200 x \$80 x P53.00) 5,088,000
Adjustment to accounts payable needed.. P 19,200

## February 3, 20x5 (Settlement date):

Accounts payable 5,107,200
Foreign currency transaction loss [\$96,000 x (P53.80 P53.20)] 57,600
Cash (\$96,000 x P53.80). 5,164,800
To record exchange loss on accounts payable in euros and settlement of
accounts payable in euros at the spot rate of P53.80.

## Note the following:

The investment in Pineapple Computers, Inc shares is a non-monetary item that is
carried at fair value as it is classified as equity investment through profit or loss (or
a financial asset FVTPL refer PFRS 9). The investment is revalued and translated at
the rate on the date of revaluation, that is, December 31, 20x4.
The equipment is translated at the spot rate at the date of purchase and, being a
non-monetary item, is carried at cost. It is not adjusted for the change in the
exchange rate at balance sheet date. The accounts payable in euros is a monetary
item and is remeasured using the cu rr ent / closing rate at balance sheet date. The
exchange loss is expensed off to the income statement

Problem VII
1. May 1 Inventory (or Purchases) 8,400
Accounts Payable 8,400
Foreign purchase denominated in pesos

Cash 8,400
Settle payable.

## July 1 Accounts Receivable 10,000

Sales 10,000
Foreign sale denominated in pesos

## August 10 Cash 10,000

Accounts Receivable 10,000
Collect receivable.

## 2. May 1 Inventory (or Purchases) 8,400

Accounts Payable (FC1) 8,400
Foreign purchase denominated in yen:
P8,400 / P.0070 = FC1 1,200,000
June 20 Foreign Currency Transaction Loss 600
Accounts Payable (FC1) 600
Revalue foreign currency payable to
peso equivalent value:
P9,000 = FC1 1,200,000 x P.0075 June 20 spot rate
- 8,400 = FC1 1,200,000 x P.0070 May 1 spot rate
P 600 = FC1 1,200,000 x (P.0075 - P.0070)

## Accounts Payable (FC1) 9,000

Foreign Currency Units (FC1) 9,000
Settle payable denominated in FC1.

## July 1 Accounts Receivable (FC2) 10,000

Sales 10,000
Foreign sale denominated in foreign currency 2
(FC 2)
FC3: P10,000 / P.20 = FC2 50,000

## August 10 Accounts Receivable (FC2) 1,000

Foreign Currency Transaction Gain 1,000
Revalue foreign currency receivable
to U.S. dollar equivalent value:
P 11,000 = FC2 50,000 x P.22 Aug. 10 spot rate
- 10,000 = FC2 50,000 x P.20 July 1 spot rate
P 1,000 = FC2 50,000 x (P.22 - P.20)

## Foreign Currency Units (FC2) 11,000

Accounts Receivable (FC2 11,000
Receive FC 2 in settlement of receivable

Problem VIII
1. Denominated in FC
RR Imports reports in Philippine pesos:

## Transaction Balance Sheet Settlement

Date Date Date
Direct
Exchange P.70 P.66 P.68
Rate

2. December 1, 20x4
Inventory (or Purchases) 10,500
Accounts Payable (FC) 10,500
P10,500 = FC 15,000 x P.70

## December 31, 20x4

Accounts Payable (FC) 600
Foreign Currency Transaction Gain 600
Revalue foreign currency payable to
equivalent peso value:
P 9,900 = FC 15,000 x P.66 Dec. 31 spot rate
-10,500 = FC 15,000 x P.70 Dec. 1 spot rate
P 600 = FC 15,000 x (P.66 - P.70)

## January 15, 20x5

Foreign Currency Transaction Loss 300
Accounts Payable (FC) 300
Revalue payable to current peso equivalent
P10,200 = FC 15,000 x P.68 Jan. 15, 20x5, value
- 9,900 = FC 15,000 x P.66 Dec. 31, 20x4, value
P 300 = FC 15,000 x (P.68 - P.66)

## Accounts Payable (FC) 10,200

Foreign Currency Units (FC) 10,200
P10,200 = FC 15,000 x P.68

## Accounts Payable (FC)

(FC 15,000 x P.70) 12/1/x4 10,500
AJE 12/31/x4 600
(FC 15,000 x P.66) Bal 12/31/x4 9,900
AJE 1/15/x5 300
(FC 15,000 x P.68) Bal 1/15/ x5 10,200
1/15/x5 Settlement 10,200
Bal 1/16/x5 -0-

Problem IX
1. December 31, 20x6
Accounts Receivable (FC1) 10,000
Foreign Currency Transaction Gain 10,000
to current peso equivalent
and recognize exchange gain:
P83,600 = FC475,000 x P.176 Dec. 31 spot rate
- 73,600 = Preadjusted Dec. 31, 20x6, value
P10,000

## Accounts Payable (FC2) 5,200

Foreign Currency Transaction Gain 5,200
currency to current peso equivalent
and recognize exchange gain:
P175,300 = Preadjusted Dec. 31, 20x6, value
- 170,100 = FC2 21,000,000 x P.0081, Dec. 31 spot rate
P 5,200

## 2. Accounts Receivable (FC1) 1,900

Foreign Currency Transaction Gain 1,900
to equivalent peso value on
settlement date:
P85,500 = FC1 475,000 x P.180 20x7 collection date value
- 83,600 = FC1 475,000 x P.176 Dec. 31, 20x6, spot rate
P 1,900 = FC1 475,000 x (P.180 - P.176)
Cash 164,000
Foreign Currency Units (FC1) 85,500
Accounts Receivable (FC1) 85,500
Accounts Receivable (P) 164,000
Collect all accounts receivable.

## 3. Accounts Payable (FC2) 6,300

Foreign Currency Transaction Gain 6,300
value on settlement date:
P163,800 = FC2 21,000,000 x P.0078 20x7 payment date value
- 170,100 = FC2 21,000,000 x P.0081 Dec. 31, 20x6, spot rate
P 6,300 = FC2 21,000,000 x (P.0078 - P.0081)

## Accounts Payable (P) 86,000

Accounts Payable (FC2) 163,800
Foreign Currency Units (FC2) 163,800
Cash 86,000
Payment of all accounts payable.

## 4. Transaction gain on FC:

December 31, 20x6 P10,000 gain
December 31, 20x7 1,900 gain
Overall P11,900 gain

## 5. Transaction gain on FC2:

December 31, 20x6 P 5,200 gain
December 31, 20x7 6,300 gain
Overall P11,500 gain

## 6. Overall foreign currency transactions gain:

Gain on FC1 transaction P11,900
Gain on FC2 transaction 11,500
P23,400

CDL could have hedged its exposed position. The exposed positions are only those
denominated in foreign currency units. The accounts receivable denominated in
FC1 could be hedged by selling FC1 in the forward market, thereby locking in the
value of the FC1. The accounts payable denominated in FC2 could be hedged by
buying FC2 in the forward market, thereby locking in the value of the FC2.

Problem X
Foreign Currency Foreign Currency
Accounts Transaction Exchange Transaction
Receivable Accounts Payable Loss Exchange Gain

## Case 4 P6,250(g) NA P1,250(h) NA

(a) LCU 40,000 x P.40
(b) LCU 40,000 x (P.40 - P.45)
(c) LCU 20,000 x P1.90
(d) LCU 20,000 x (P1.90 - P1.80)
(e) LCU 30,000 x P.90
(f) LCU 30,000 x (P.90 - P.80)
(g) LCU 2,500,000 x P.0025
(h) LCU 2,500,000 x (P.0025 - P.003)
Multiple Choice Problems
1. c C\$1 / P.90 (C\$1.11 = P1.00)

## 2. d (correction: the question should be April 20, 20x5 not 20x4)

20x4 20x5
P.4895 x FC30,000 P14,685 P.4845 x FC30,000 P14,535
P.4845 x FC30,000 14,535 P.4945 x FC30,000 14,835
Gain P 150 Loss P (300)
3. b
20x4
Date of transaction (12/1/20x4) P .0095
Balance sheet date (12/31/20x4) .0096
Foreign exchange currency loss per FC P .0001
Multiplied by: No. of FC 1,000,000
Foreign exchange currency loss P 100

20x5
Balance sheet date (12/31/20x4) P .0096
Date of settlement (1/10/20x5) .0094
Foreign exchange currency gain per FC P .0002
Multiplied by: No. of FC 1,000,000
Foreign exchange currency gain P 200

4. c
Balance sheet date (12/31/20x4) P125,000
Date of settlement (7/1/20x5) 140,000
Foreign exchange currency loss P 15,000

5. b January 15
Foreign Currency Units (LCU) 300,000
Exchange Loss 15,000
Accounts Receivable (LCU) 315,000
Collect foreign currency receivable and
recognize foreign currency transaction
loss for changes in exchange rates:
P300,000 = (LCU 900,000 / LCU 3) Jan. 15 value
- 315,000 = Dec. 31 Peso equivalent
P 15,000 Foreign currency transaction loss

## 6. c spot rate on the date of transaction

7. a - spot rate on the date of transaction
8. d P120,000 = July 1, 20x4, Peso equivalent value
P140,000 = December 31, 20x4, Peso equivalent value
(LCU 840,000 / P140,000) = LCU 6 / P1
-105,000 = July 1, 20x5, Peso equivalent value
(LCU 840,000 / 8) = P105,000
P(35,000) Foreign currency transaction loss
9. d P27,000 = P6,000 + P20,000 + P1,000

1/20/x4 90,000
AJE 6,000
3/20/x4 96,000

## Foreign Exchange Loss 6,000

Accounts Payable (FCU) 6,000

## Notes Payable (FCU)

7/01/x4 500,000
AJE 20,000
12/31/x4 520,000
Foreign Exchange Loss 20,000
Notes Payable (FCU) 20,000

## Interest Payable (FCU)

(FCU500,000 x .10 x 1/2 year) 25,000
AJE 1,000
12/3/x4 26,000
Interest expense 25,000
Interest Payable (FCU) 25,000

## Foreign Exchange Loss 1,000

Interest Payable (FCU) 1,000

10. c P5,000
Accounts Receivable (FCU)
10/15/x4 100,000
AJE 5,000

## Accounts Receivable (FCU) 5,000

Foreign Exchange Gain 5,000

Note: The receivable is recorded on October 15, 20x4, when the goods were
shipped, not on September 1, 20x4, when the order was received.

11. b P1,000
Accounts Payable (FCU)
(10,000 x P.60) 4/08/x4 6,000
x4 AJE 500
(10,000 x P.55) 12/31/x4 5,500
X5 AJE 1,000
(10,000 x P.45) 3/01/x5 4,500
Settlement 4,500
Bal. -0-
X5 AJE Accounts Payable (FCU) 1,000
Foreign Exchange Gain 1,000
12. b P9,000 = 300,000 FCUs x (P1.65 - P1.62). The foreign currency transaction gain is
computed using spot rates on the transaction date (November 30, 20x4) and the
balance sheet date (December 31, 20x4). The forward exchange rates are not
used because the transaction was not hedged.
13. c
Date of transaction (7/7) P 2.08
Balance sheet date (8/31) 2.05
Foreign exchange currency gain per FCU P .03
Multiplied by: No. of FCU 350,000
Foreign exchange currency gain P 10,500

14. b The value of the asset acquired should be the spot rate on the date of transaction, i.e.
P-80. Therefore, the final recorded value of the electric generator should be P40,000 (P.80 x
50,000 FCs)
15. a
Date of transaction P .75
Date of settlement .80
Foreign exchange currency gain per FCU P .05
Multiplied by: No. of FCU 200,000
Foreign exchange currency gain P 10,000

16. d
Date of transaction (12/15) P .60
Balance sheet date (12/31) .65
Foreign exchange currency gain per FCU P .05
Multiplied by: No. of FCU 80,000
Foreign exchange currency gain P 4,000

17. b
Date of transaction (11/30) P 1 .65
Balance sheet date (12/31) 1.62
Foreign exchange currency gain per FCU P .03
Multiplied by: No. of FCU 300,000
Foreign exchange currency gain P 9,000

18. b
Date of transaction (11/30) P1.49
Balance sheet date (12/31) 1.45
Foreign exchange currency gain per FCU P .04
Multiplied by: No. of FCU 500,000
Foreign exchange currency gain P 20,000

19. a
Date of arrival (P1,000 / 480,000 FC) P .00208
Date of departure (P100/50,000 FC) .00200
Foreign exchange currency loss per FCU P .00008
Multiplied by: No. of FCU 50,000
Foreign exchange currency loss P 4

20. b
Date of transaction (10/1) P 1.20
Balance sheet date (12/31) 1.10
Foreign exchange currency gain per LCU P .10
Multiplied by: No. of LCU 5,000
Foreign exchange currency gain P 500
21. d
Date of transaction (11/2) P 1. 08
Balance sheet date (12/31) 1.10
Foreign exchange currency gain per LCU P .02
Multiplied by: No. of LCU 23,000
Foreign exchange currency gain P 460

22. a
Date of transaction (9/3) : P17,000 / P.85 = 20,000 FC P . 85
Date of settlement (10/10) .90
Foreign exchange currency loss per FC P .05
Multiplied by: No. of FC 20,000
Foreign exchange currency loss P 1,000

23. a
Date of transaction (12/5) P .265
Balance sheet date (12/31) .262
Foreign exchange currency gain per FC P .003
Multiplied by: No. of FC 100,000
Foreign exchange currency gain P 300

24. d
Balance sheet date (12/31) P .262
Date of settlement (1/10) .264
Foreign exchange currency loss per FC P .002
Multiplied by: No. of FC 100,000
Foreign exchange currency loss P 200

25. c
Foreign exchange currency gain (No. 25) P 300
Foreign exchange currency loss (No. 26) _ 200
Overall gain , net P 100

or,
Date of transaction (12/5) P .265
Date of settlement (1/10) .264
Foreign exchange currency gain per FC P .001
Multiplied by: No. of FC 100,000
Foreign exchange currency gain P 100

## 26. b any gain or loss on foreign currency should be considered ordinary.

27. d
Date of transaction (4/8) : P1 / .65 FC (direct quote) P 1.54
Date of settlement (5/8): P1/ .70 FC (direct quote) 1.43
Foreign exchange currency loss per FC P .11
Multiplied by: No. of FC 35,000
Foreign exchange currency loss P 3,850
28. d the amount of sales should be the spot rate on the date of transaction (or the balance
sheet date - historical rate). I.e., P1.7241 x 10,000 FCs = P17,241.

29. e
1/1: Date of transaction spot rate P 1.7241
12/31: Balance sheet date 1.8182
Foreign exchange currency gain per FC P .0941
Multiplied by: No. of FC 10,000
Foreign exchange currency gain P 941
30. b
Balance sheet date (12/31/20x4) P 1.8182
Date of settlement (1/30/20x5) 1.6666
Foreign exchange currency loss per FC P .1516
Multiplied by: No. of FC 10,000
Foreign exchange currency loss P 1,516

31. a since accounts payable is an exposed account meaning their value will fluctuate based
on the spot exchange rates, the value of the accounts payable should be the value on
May 8, i.e., the spot rate of P1.25 (P.15 x 2,000,000 FCs = P2,500,000).
32. c
5/8: Date of transaction spot rate P 1.25
5/31: Balance sheet date 1.26
Foreign exchange currency loss per FC P 0.01
Multiplied by: No. of FC 2,000,000
Foreign exchange currency loss P 20,000

## 33. e in a two-transaction approach, the recognition of foreign exchange gain or loss is

separate from the settlement, therefore, the amount of accounts payable to be settled
should be the spot rate on the settlement date, i.e., P1.20 (P1.20 x 2,000,000 FCs = P2,400,000)
34. a
Balance sheet date (12/31/20x4) P8,000
Date of settlement (3/2/20x5) 6,900
Foreign exchange currency loss P 1,100

35. d
4/8/20x3: Date of transaction P 97,000
12/31/20x3: Balance sheet date 103,000
Foreign exchange currency loss P 6,000

36. d
Balance sheet date (12/31/20x3) P103,000
Date of settlement (4/2/20x4) 105,000
Foreign exchange currency loss P 2,000

37. d
11/4/x6: Date of transaction spot rate P .70
12//31/x6: Balance sheet date .67
Foreign exchange currency loss per FC P 0.03
Multiplied by: No. of FC 100,000
Foreign exchange currency loss P 3,000

38. d
10/5/x6: Date of transaction spot rate P .80
12//31/x6: Balance sheet date .84
Foreign exchange currency loss per FC P 0.04
Multiplied by: No. of FC 100,000
Foreign exchange currency loss P 4,000

39. b
Income statement:
12/20/x6: Date of transaction spot rate P .798
12//31/x6: Balance sheet date .795
Foreign exchange currency gain per FC P 0.003
Multiplied by: No. of FC 1,000,000
Foreign exchange currency gain P 3,000
Balance sheet: Inventory should be spot rate on the transaction date:
P.798 x 1,000,000 = P798,000.

40. a
Income statement:
12/15/x6: Date of transaction spot rate P .181
12//31/x6: Balance sheet date .180
Foreign exchange currency loss per FC P 0.001
Multiplied by: No. of FC 1,000,000
Foreign exchange currency loss P 1,000

## Sales should be spot rate on the transaction date:

P.181 x 1,000,000 = P181,000

## 41. b - 70,000 x P.65

42. b - 70,000 x P.65
43. a - 70,000 x P.72
44. c - 70,000 x (P.72 - P.65)
45. b - 70,000 x (P.69 - P.72)
46. d - 25,000 x P1.14
47. b - 25,000 x P1.06
48. a - 25,000 (P1.14 - P1.06)
49. d - 25,000 (P1.06 - P1.09)
50. d spot rate on the date of settlement
51. b spot rate on the date of purchase/transaction
52. b - spot rate on the date of transaction
53. a refer to page 646 of the book for the discussion of one-transaction theory
54. c (P.82 P.82) x 1,000 FCUs
55. a - P5 exchange gain = (P.81 P.8050) x 1,000 FCUs
56. b spot rate on the date of transaction(loan date) 5,000,000 x P1.150
57. d spot rate on the balance sheet date (5,000,000 x 5%) x P1.1490
58. a (P1.15 P1.149) x 5,000,000 = P5,000 gain
59. d spot rate on the date of transaction(loan date) (5,000,000 x 5%) x P1.1485
60. d
P78,000/P.80 per FCU = P 97,500
P78,000/P.78 per FCU = _100,000
Difference in FCU = P (2,500)

## 61. b - P97,500 francs (from 60 above) x P.78 = P76,050

62. d
Indirect exchange rate:
for the Singapore dollars: 1/07025 = 1.4235
for the HK dollars: 1/2.5132 = .3979

## 63. a - HK\$10,000 x P2.5132/HK\$ = P25,132

64. b - P10,000/P.7025 = 14,235 Singapore dollars
65. b FC 1,000,000 x (P0.77 - P0.80) = P30,000 loss
66. d FC 5,000 x P0.77 = P3,850
Theories
Completion Statements
1. International Accounting Standards Board
2. International Accounting Standards
3. commodities
4. conversion
5. translation
6. indirect
7. direct
8. floating, free
9. spot
10. differential rates of inflation
12. denominated
13. measures
14. exposed asset position
15. exposed liability position
16. transaction date
17. bank wire transfers

## True or False/Multiple Choice

1. False 6. False 11. True 16. False 21. False 26. True 31. True 36. False
2. True 7. True 12. False 17. True 22. True 27. False 32. False 37. True
3. False 8. False 13. True 18. False 23. True 28. False 33. False 38. False
4. True 9. True 14. False 19. False 24. False 29. True 34. True 39. True
5. False 10. False 15. True 20. False 25. True 30. False 35. False 40. True

## 41. False 46. b 51. c 56. d 61. c 66. d 71. d 76. b

42. True 47. b 52. a 57. c 62. b 67. c 72. c 77. a
43. False 48. d 53. a 58. d 63. a 68. c 73. b 78. d
44. True 49. b 54. b 59. a 64. c 69. b 74. a 79. b
45. True 50. d 55. d 60. c 65. c 70. d 75. c 80. d

## 81. b 86. d 91. c 96. b

82. d 87. b 92. a 97. a
83. d 88. b 93. a 98. d
84. c 89. b 94. d 99. c
85. d 90. d 95. c/d 100. d