Ssim-Tech, a US corporation has subsidiaries in six foreign countries.

1. ssim-Tech's foreign currency transactions in the swap market may simultaneously use _________ .

• Average quarterly and year -end rates
• A spot purchase and forward sale
• Spot sale and forward sale
• Spot purchase and forward purchase
• None of the choices apply

2.ssim-Tech's foreign currency transactions in the forward market may use _________ rates.

• Premium or discounts to the spot rate
• Weighted average of the spot rate
• Quarterly spot
• Forward market
• None of the choices apply

3.ssim-Tech's foreign currency transactions in the spot market may use _________ rates.

• Average
• Weighted average
• Direct or indirect
• Forward market
• None of the choices apply

4.ssim-Tech, a US corporation has subsidiaries in six foreign countries. Ssim-Tech's functional currency is the ________.

• Euros
• Weighted average of six currencies
• Direct or indirect rate
• US dollar
• None of the choices apply

5.ssim-Tech, a US corporation has subsidiaries in six foreign countries. Five subsidiaries all us IFRS and one uses local GAAP. To prepare consolidated financial statements it must _________ .

• Translate the subsidiaries financial statements into US dollars
• Translate the subsidiaries financial statements into Euros
• Restate US operations into IFRS
• Restate US operations and the one local GAAP subsidiary into IFRS
• None of the choices apply

6.ssim-Tech, a US corporation has subsidiaries in six foreign countries. When ssim-Tech is preparing consolidated statements and is translating revenues and expenses using the single rate method it would use the ________ exchange rate.

• Average
• Weighted average
• Historical
• Current
• None of the choices apply

7.ssim-Tech, a US corporation has subsidiaries in six foreign countries. When ssim-Tech is preparing consolidated statements and is translating using a multiple rate method it would use the ________ exchange rates.
Average and current

• Historical and weighted average
• Historical and current
• Historical and average
• None of the choices apply

8.ssim-Tech, a US corporation has subsidiaries in six foreign countries. When ssim-Tech is preparing consolidated statements and is using the monetary-nonmonetary method it would use the ________ exchange rates to to translate monetary assets (claims to and obligations to pay a fixed amount in the future).

• Average or weighted average
• Historical
• Current
• Year-end
• None of the choices apply

9.ssim-Tech, a US corporation has subsidiaries in six foreign countries. When ssim-Tech is preparing consolidated statements and is using the temporal method it would use the ________ exchange rates to to translate non-monetary items.

• Average or weighted average
• Historical
• Current
• Year-end
• None of the choices apply

10.ssim-Tech, a US corporation has subsidiaries in six foreign countries. When ssim-Tech is preparing consolidated statements and is considering a deferral of any gains or losses. This deferral would presented as ___________.

• An item in equity
• An item in expense
• An item in income
• Either B or C
• None of the choices apply

Answer rating: 100% (QA)

1 A spot purchase and forward sale 2 Premium or di... View the full answer