Select the best answer choice for each of the following items. 1. Perez Company's operations are...

    

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Select the best answer choice for each of the following items. 1. Perez Company's operations are unrelated to the operations of its subsidiary. Certain balance sheet accounts of the foreign subsidiary at December 31, 2014, have been translated into U.S. dollars as follows: Translated at: Current Rates Historical Rates Accounts receivable, current $200,000 $220,000 Accounts receivable, long-term 130,000 140,000 Prepaid insurance 50,000 55,000 Goodwill 100,000 110,000 Chapter 13 Translation of Financial Statements of Foreign A If the ating is in accordance with SFAS No. 32, what total sheild be included a balance sheet at December 31, 2014, for the finge? (5480,000 dhe $400,000 () $495,000 (d) $580,000 2. When the functional currency of a foreign operation is the U.S. dollar, translation p losses resulting from translating (remeasuring) foreign currency financial wees US dollars should be included as (a) An extrandinary lem in the income statement for the period in which the p (b) An ordinary item in the income statement for losses but deferred for gains in sc with the conservatism convention. (e) An ordinary item in the income statement for the period in which the rate ch (d) A deferred item in the balance sheet. 3. Pal Company is translating account balances of its foreign subsidiary into dolas December 31, 2014, balance sheet and its 2014 income statement. The function c was identified as the local currency of the foreign subsidiary. The average exchange 2014 should be used to translate (a) Retained earnings at January 1, 2014 (b) Equipment purchased in 2014. (c) Sales for 2014. (d) Cash at December 31, 2014 4. One of the first steps in translating the financial statements of a foreign subsidiary is ta identification of the functional currency of that entity. Which of the following indicante the functional currency is the local currency of the foreign entity? (a) There is a high volume of intercompany transactions. (b) Financing is primarily denominated in the local currency. (c) Sales are mostly in the United States, or sales contracts are denominated in dollars (d) Sales prices are primarily responsive in the short term to exchange rate changes 5. When the foreign operations are conducted in a highly inflationary economy, as wha lation rates should the goodwill and accounts receivable accounts in foreign statem translated into U.S. dollars? Goodwill Accounts Receivable (a) Current (b) Historical Average for year Current (c) Historical Historical (d) Current Current AICPA al Everc Select the best answer choice for each of the following items. 1. Perez Company's operations are unrelated to the operations of its subsidiary. Certain balance sheet accounts of the foreign subsidiary at December 31, 2014, have been translated into U.S. dollars as follows: Translated at: Current Rates Historical Rates Accounts receivable, current $200,000 $220,000 Accounts receivable, long-term 130,000 140,000 Prepaid insurance 50,000 55,000 Goodwill 100,000 110,000 Chapter 13 Translation of Financial Statements of Foreign A If the ating is in accordance with SFAS No. 32, what total sheild be included a balance sheet at December 31, 2014, for the finge? (5480,000 dhe $400,000 () $495,000 (d) $580,000 2. When the functional currency of a foreign operation is the U.S. dollar, translation p losses resulting from translating (remeasuring) foreign currency financial wees US dollars should be included as (a) An extrandinary lem in the income statement for the period in which the p (b) An ordinary item in the income statement for losses but deferred for gains in sc with the conservatism convention. (e) An ordinary item in the income statement for the period in which the rate ch (d) A deferred item in the balance sheet. 3. Pal Company is translating account balances of its foreign subsidiary into dolas December 31, 2014, balance sheet and its 2014 income statement. The function c was identified as the local currency of the foreign subsidiary. The average exchange 2014 should be used to translate (a) Retained earnings at January 1, 2014 (b) Equipment purchased in 2014. (c) Sales for 2014. (d) Cash at December 31, 2014 4. One of the first steps in translating the financial statements of a foreign subsidiary is ta identification of the functional currency of that entity. Which of the following indicante the functional currency is the local currency of the foreign entity? (a) There is a high volume of intercompany transactions. (b) Financing is primarily denominated in the local currency. (c) Sales are mostly in the United States, or sales contracts are denominated in dollars (d) Sales prices are primarily responsive in the short term to exchange rate changes 5. When the foreign operations are conducted in a highly inflationary economy, as wha lation rates should the goodwill and accounts receivable accounts in foreign statem translated into U.S. dollars? Goodwill Accounts Receivable (a) Current (b) Historical Average for year Current (c) Historical Historical (d) Current Current AICPA al Everc

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If the No 52 M u TATE accounting is in accordance with SFAS what total should be includ... View the full answer