Q8. Wilkins and Hirauye are working on constructing the consolidated statements for Neslarone. They know that after they convert from Swiss Francs (CHF) to U.S. dollars (USD), they will be left with a foreign currency adjustment that needs to be included on the financial statements. To convert from CHF to USD, the analysts should use the: A) temporal method and they should record the foreign currency adjustment on the income statement. B) all-current method and they should record the foreign currency adjustment on the balance sheet. C) all-current method and they should record the foreign currency adjustment on the income statement.
Q9. Remeasurement can be described as the following. The translation of: A) local currency transactions into the reporting currency. B) the functional currency of a subsidiary into a reporting currency. C) local currency transactions into the functional currency.
Q10. Which of the following is NOT correct concerning the functional currency?
A) Remeasurement is the conversion of the functional currency into the reporting currency. B) Remeasurement is the translation of local currency transactions into the functional currency. C) Translation is the conversion of the functional currency into the reporting currency.
Q11. Which of the following statements regarding the functional currency is FALSE? The functional currency: A) is determined by management. B) is remeasured into the reporting currency under the temporal method. C) is the currency of the primary economic environment in which the foreign subsidiary generates and expends cash.
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发表于 2009-1-17 14:47
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