1. How should we account for the difference in the value of a receivable denominated in a foreign currency between the time it was recorded and the time the cash was received?

Multiple Choice

• As an extraordinary capital expenditure

• As stockholders' equity adjustment

• As a prior period adjustment

• As a purchases adjustment

2. Samir Company, incorporated in Egypt, has operations in China, Germany, and France. Which of the following statements about Samir's operations is correct?

Multiple Choice

• Samir must give credit for corporate taxes paid in accordance with Egyptian tax laws in order to avoid double taxation.

• For consolidation purposes, Samir 's financial statements must be prepared in the local currencies of the branch countries.

• To audit the operations of branch offices, Samir's external auditor should be professional in Egyptian auditing and financial reporting standards.

• The transfer of parts between Egypt operations and other branches should be at the highest acceptable price that is most profitable to Samir, taking into account tax rates and tax authorities in respective nations.