A Canadian company does some business in the U.S.and as a part of these activities they keep US$50,000 on deposit in a U.S.Bank account.The bookkeeper noticed that this year when the account was placed on the balance sheet it was less than last the year's comparative number, even though the amount in the account hadn't changed.What would explain this apparent change?

Question

Quizplus · Accepted Answer

The apparent change could be due to exchange rate differences, as fluctuations in exchange rates can affect the value of foreign currency held in a bank account when reported in the financial statements of a company based in another country.

A Canadian Company Does Some Business in the U