Question
Account for foreign transactions where differences occur on actual inflows and outflows resulting in __ __ (Select the missing pair of words below to complete the sentence) realised gains and losses increased profit and retained earnings cash budget and cash flows good growth and continuity
Answer
4.6
(300 Votes)
Stanley
Elite · Tutor for 8 years
Answer
realised gains and losses.
Explanation
## Step 1:The problem poses the task of choosing the proper financial terms leading to a plausible and meaningful sentence about account-keeping and business. In order to select an appropriate answer, understanding some basic financial terminologies and their contexts are required.## Step 2:“Realised gains and losses” generally refer to the obtained gains at the point of selling a capital asset; happened - not hypothetical- gains or losses. This seems consistent in the context of accurately recording foreign transactions where inflows and outflows - normal business practice, albeit seldom inaccurate - might produce some changes or discrepancies that affects gains and losses.## Step 3:"Increased profit and retained earnings" is a result not a pairing suitable to accounting discrepancies. Organisation is geared towards increasing profit and retaining earnings. However, discrepancies built in foreign transactions won't primarily buy into here - it wouldn't match deciding as the apt component went missing as our required pair.## Step 4:"Cash budget and cash flows" possibly accurately capture part of broader financial architecture and usually associated with an overall plan with respect to monetary movement, inclusive of numerous elements inside an organisation, i.e., sales, costs, payments. Discrepancies from currency fluctuations (flows) are commonly reported relatively separately and in a different output domain in their context shift usually weighing in specifically profit and loss terms.## Step 5:"Good growth and continuity" is more identical in flagging prosperous progress business-wise. While successful business command both growth and continuity scenario balanced together. The complexity in international trade processes - pinpoint exchange rates altitude - doesn't intuit dependence here.###
Numerous impact initiating from inaccuracies disdain foreign dialogue transactions tabletop unveils focus and shift profoundly driving forgone profit and soldered gain thus ended severely limiting retaining continuity and promoting growth independently.