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You are reviewing your client's Multicurrency company Balance Sheet, and the balance as of the...

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Accounting

You are reviewing your client's Multicurrency company Balance Sheet, and the balance as of the previous fiscal year-end for their US bank account, which they closed last year, is a $10 debit balance in Canadian dollars (the home currency). However, the US dollar balance correctly indicates the account has been closed.

Select 2 reasons why this would be the case or how to remedy it.

You have to create a journal entry debiting foreign exchange gain or loss $10 and crediting the US bank account $10

The US bank account has not been reconciled as of the last fiscal year-end

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 currency revaluation for the US bank account as of the current date

You have to perform a currency revaluation for the US bank account as of the last fiscal year-end

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