Q1. Is an acquisition of treasury stock or a loss from the write-down of inventory under the lower-of-cost-or-market rule included in comprehensive income? Inventory write-down
Acquisition of treasury stock
A) No Yes B) No No C) Yes No
Q2. For the year ended December 31, 2007, Milan Company reported the following financial information: Gross profit from sales | $600,000 | Operating expenses | 100,000 | Unrealized loss from foreign currency translation | 30,000 | Dividends received from available-for-sale securities | 15,000 | Increase in minimum pension liability | 45,000 | Interest expense | 25,000 | Acquired treasury stock for $25,000 more than original book value | 75,000 | Unrealized gain from available-sale-securities | 20,000 |
Ignoring taxes, calculate Milan’s net income and comprehensive income for 2007. Net income
Comprehensive income
A) $490,000 $2,000 B) $490,000 $435,000 C) $40,000 $44,000
Q3. For the year ended December 31, 2007, Cobra Company reported the following financial information: Revenue | $100,000 | Cost of goods sold | 40,000 | Operating expenses | 20,000 | Unrealized gain from foreign currency translation | 5,000 | Unrealized loss on cash flow hedging derivatives | 3,000 | Dividends paid to common shareholders | 7,500 | Realized gain on sale of equipment | 1,000 |
Ignoring taxes, calculate Cobra’s net income and comprehensive income for 2007. Net income
Comprehensive income
A) $40,000 $43,000 B) $41,000 $2,000 C) $41,000 $43,000
Q4. Barracuda Corporation, a U.S. corporation, owns a subsidiary located in Germany. The German subsidiary’s financial statements are maintained in euros. If the euro recently appreciated relative to the U.S. dollar, how would the unrealized translation gain affect Barracuda’s retained earnings and total stockholders’ equity? Retained earnings
Total stockholders' equity
A) No effect No effect B) Increase Increase C) No effect Increase
| 
发表于 2009-1-17 10:13
| 
