The price of one currency stated in terms of another currency is the Current ratio. Exchange rate. Facilitating payment. International clearing price. Rochester, Inc. purchased cameras from a Japanese company at a price of 4 million yen. On the purchase date, the exchange rate was $0.0100 per Japanese yen, but when Rochester, Inc., paid the liability, the exchange rate was $0.0103 per yen. When this foreign account payable was paid, Rochester, Inc., recorded a: Debit to Inventory of $1.200. Loss of $1, 200. Credit to Accounts Payable of $41, 200. Gain of $1, 200. The principal difference between managerial accounting and financial accounting is that managerial accounting information is: Prepared by managers. Intended primarily for use by decision makers inside the business organization. Prepared in accordance with a set of accounting principles developed by the Institute of Certified Managerial Accountants. oriented toward measuring solvency rather than profitability. Since manufacturing costs (direct materials, direct labor, and overhead) are incurred the process of manufacturing units of product, these costs are debited to: The Direct Materials Inventory, Direct Labor, and Manufacturing overhead account. Expense accounts. The Work in Process Inventory account. he cost of Goods sold account