Question

Review all vouchers supporting gains and deficiencies on foreign currency
transactions________

Answer 1

Vouchers are used to support gains and deficiencies in foreign currency transactions, recording the impact of exchange rate fluctuations.

Step-by-step explanation:

In the context of foreign currency transactions, vouchers are documents that provide support for gains and deficiencies. These vouchers serve as evidence of the financial transactions and help in recording and analyzing the effects of foreign currency fluctuations.

1. When a gain occurs due to an increase in the value of a foreign currency relative to the domestic currency, a voucher is created to record this gain.
2. On the other hand, when a deficiency occurs due to a decrease in the value of a foreign currency relative to the domestic currency, a voucher is also created to record this deficiency.

By reviewing all vouchers supporting gains and deficiencies on foreign currency transactions, organizations can accurately track and document the impact of exchange rate fluctuations on their financial performance.