Question

An exchange rate on the date of Balance Sheet is known as_________
A)average rate
B)Closing rate
C) monetary rate
D) non-monetary rate

Answer 1

An exchange rate on the date of Balance Sheet is known as B)Closing rate

• Option A is not correct as average rate can be described as a mean for the exchange rates that are present during a certain time.
• Option C is not correct as monetary rate are concerned with the money held and the assets that are receivable or payable through monetary value.
• Option D is not correct as non-monetary rate is a rate other than monetary value.
• Option B is correct because closing rate is described as the exchange rate on the Balance sheet date.

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