Professional Documents
Culture Documents
Answer: It could help on determining a companys health and stability by making it as the
summary of the accounting process and provide the organization of account title and amount
of money to make it easier to make the decision with most efficiency in business. It also help
to communicate the decision and the impact after it is decided.
Global Awareness
1. Current exchange rates change constantly. Do an internet search and report
the current exchange rate for the chinese yuan?
Answer: Yes, google show the graph of rate of exchange for the chinese. By in 2014
1 yuan worth 0.16 dollar while currently, 1 yuan worth 15 dollar.
2. If the exchange rate for one Mexican peso is 0.08142, what U.S. dollar amount
would be recorded for a receipt of 5,000 Mexican
Answer: 1 / 0.08142 = 12.2819945959 peso per dollar
5000 / 12.2819945959 = 407.100000001 dollars
3. If the exchange rate for one European euro is 0.73320, what amount would be
recorded in U.S. dollars for a receipt of 200 euros?
Answer: 1 / 0.73320 = 1.36388434261 euros per dollar
200 / 1.36388434261 = 146.64 dollars
How might you journalize to show you have used supplies and prepaid insurance?
Answer: Right now have only debited supplies to show the value of these assets have
increased and value of the asset will be decreased. Prepaid expenses may need to be
adjusted at the end of the accounting period. The adjusting entry for prepaid expense
depends upon the journal entry made when it was initially recorded.