1. Under the temporal method, inventory at market would be restated at what rate? a. Beginning of the year rate b. Average rate c. Current rate d. Historical rate 2. A U.S. company sells merchandise to a foreign company denominated in U..S. dollars. Which of the following statements is true? a. If the foreign currency appreciates, a foreign exchange gain will result b. If the foreign currency depreciates, a foreign exchange gain will result c. No foreign exchange gain or loss will result d. If the foreign currency appreciates, a foreign exchange loss will result 7. Dilty Corp. owned a subsidiary in France. Dilty concluded that the subsidiarys functional currency was the U.S. dollar. What must Dilty do to ready the subsidiarys financial statements for consolidation? a. First translate them, then re-measure them b. First re-measure them, then translate them c. Translate them d. Re-measure them 3. Alpha, Inc. a U.S. company had a receivable from a customer that was denominated in pesos. On December 31, 2008, this receivable for 75,000 pesos was correctly included in Alphas balance sheet at $8,000. The receivable was collected on March 2, 2009, when the U.S. equivalent was $6,900. How much foreign exchange gain or loss will Alpha record on the income statement for the year ended December 31, 2009? a. $1,100 loss b. $1,100 gain c. $6,900 loss d. $6,900 gain e. $8,000 gain