13- According to Gray's framework for accounting system development, the counterpart to the accounting value of "secrecy" is: D. flexparency. A. professionalism. C. optimism. 14- Harmonization of accounting standards: A. is the same as convergence of accounting standards. B. always ensures resulting of comparable financial statements internationally. C. refers to the reduction of alternatives while retaining a high degree of flexibility in accounting practices. D. forces accounting differences to be resolved through litigation. 15- Northland Corporation recorded 1,000,000 in Accounts Receivable for sales to customers in the Unit Kingdom and recorded Accounts Payable of 2,000,000 Yuan for product purchased from China. If Northla recorded a foreign currency exchange loss on its receivables and a foreign currency gain on its payables, must have happened to each currency? A. Yuan depreciated, Pound depreciated B. Yuan depreciated, Pound appreciated C. Yuan appreciated, Pound appreciated D. Yuan appreciated, Pound depreciated 16- When two parties from different countries enter into a transaction: A. the two parties are free to decide the currency that should be used to settle the transaction. B. a third country's currency must be used to denominate the transaction. C. the currency to be used for settling the transaction is set by the government. D. the domestic currency of the buyer must be used to settle the transaction. 17- What is foreign exchange risk exposure? A. Losses caused by receiving payment in a foreign currency for goods sold B. Losses caused by paying for purchased goods in a foreign currency C. The possibility of a loss because of changes in the value of a foreign currency D. All of the above 18- Excel Sources Inc. is a U.S. incorporated company. Due to change in exchange rate, it receives $150, payment against a sale of $165,000. Under the two-transaction perspective: A. foreign exchange loss will be recorded for $15,000. B. the sale will be recorded at $150,000 on the date of sale. C. no journal entry will be prepared on the date of sale. D. Accounts Receivable will be debited for $15,000 on the date of payment. 19- What is meant by the "translation" of foreign currency financial statements? A. Converting financial statements prepared under foreign GAAP into domestic GAAP B. Converting financial statements of a foreign currency into a domestic currency C. Converting the language used in financial statements from foreign to domestic D. Converting historic cost financial statements into current cost financial statements 20- Which of the following statements is true of the relationship between foreign currency trans exchange rate changes, and foreign exchange gains and losses? A. In an export sale, depreciation of the foreign currency causes a foreign exchange gain. B. In an import purchase, appreciation of the foreign currency causes a foreign exchange gain. C. In an import purchase, depreciation of the foreign currency causes a foreign exchange loss. D. In an export sale, appreciation of the foreign currency causes a foreign exchange gain