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PZK co kaplan kit

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › PZK co kaplan kit

  • This topic has 3 replies, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • January 9, 2021 at 5:59 pm #605388
    draiells
    Member
    • Topics: 123
    • Replies: 141
    • ☆☆☆

    Hello, there’s a question in OCQ kaplan kit which says:

    ”PZK Co, whose home currency is the dollar, trades regularly with customers in a number of
    different countries. The company expects to receive €1,200,000 in six months’ time from a
    foreign customer. Current exchange rates in the home country of PZK Co are as follows:” ( it shows dollar has strengthened)

    ”With reference to PZK making foreign currency purchases, which of the following
    statements concerning whether PZK Co should ‘lead’ or ‘lag’ in its management of
    the anticipated receipt is true?”

    The entire question is about foreign currency receipt……… so why does the question say with reference to making foreign currency ”purchases” isn’t it foreign currency ”sales”? also it says anticipated ” RECEIPT”

    January 10, 2021 at 9:39 am #605406
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54664
    • ☆☆☆☆☆

    As you have typed it, it does seem to be incorrect in that as you say making foreign purchases would give rise to payments and not to receipts.

    January 10, 2021 at 11:32 am #605413
    draiells
    Member
    • Topics: 123
    • Replies: 141
    • ☆☆☆

    Thank you!!

    January 10, 2021 at 6:24 pm #605435
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54664
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘PZK co kaplan kit’ is closed to new replies.

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