Description of this paper

general business data bank

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solution


Question

Question;17. If the functional currency is the local currency;of a foreign subsidiary, what exchange rates should be used to translate the;items below, assuming the foreign subsidiary is in a country which has not;experienced hyperinflation over three years?;A. Option A;B. Option B;C. Option C;D. Option D;18. If the functional currency is the local currency;of a foreign subsidiary, what exchange rates should be used to translate the;items below, assuming the foreign subsidiary is in a country which has not;experienced hyperinflation over three years?;A. Option A;B. Option B;C. Option C;D. Option D;19. Which combination of accounts and exchange rates;is correct for the translation of a foreign entity's financial statements from;the functional currency to U.S. dollars?;A. Option A;B. Option B;C. Option C;D. Option D;20. Which combination of accounts and exchange rates;is correct for the remeasurement of a foreign entity's financial statements;from its local currency to U.S. dollars?;A. Option A;B. Option B;C. Option C;D. Option D;21. The assets listed below of a foreign subsidiary;have been converted to U.S. dollars at both current and historical exchange;rates. Assuming that the local currency of the foreign subsidiary is the;functional currency, what total amount should appear for these assets on the;U.S. company's consolidated balance sheet?;A. $636,000;B. $648,000;C. $708,000;D. $960,000;22. The gain or loss on the effective portion of a;U.S. parent company's hedge of a net investment in a foreign entity should be;treated as;A. an adjustment to the retained earnings account in the stockholders;equity section of its balance sheet.;B. other comprehensive income.;C. a translation gain or loss in the computation of net income for the;reporting period.;D. an adjustment to a valuation account in the asset section of its;balance sheet.

 

Paper#45049 | Written in 18-Jul-2015

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