Q6. Jameson must also determine how the fluctuation in the yen vs. the dollar has affected Kasamatsu's earnings in the reporting currency. Which of the following best describes the effect of changes in the yen/dollar rate has had on earnings in the reporting currency? Earnings have: A) decreased because the yen is depreciating versus the USD. B) increased because the yen is depreciating versus the USD. C) increased because the yen is appreciating versus the USD.
Q7. If the functional currency has been determined to be the local currency, then:
A) use remeasurement to translate the foreign subsidiary's results. B) use the temporal method to translate the foreign subsidiary's results. C) use the current rate method to translate the foreign subsidiary's results.
Q8. Which of the following statements regarding the functional currency under SFAS 52 is FALSE? A) The functional currency is defined as the primary currency of the economic environment in which the parent firm operates. B) Self-contained, independent subsidiaries whose operations are primarily located in the local market will use the local currency as the functional currency. C) If a firm operates in a country or environment which is subject to cumulative inflation of 100% or more over a three year period, that firm will use the parent's currency as the functional currency.
Q9. Each of the following items is considered a monetary asset or liability account under the temporal method for foreign currency translation EXCEPT:
A) accounts payable. B) long-term debt. C) inventory.
Q10. Which of the following statements regarding the foreign currency translation under SFAS 52 is FALSE? The functional currency is the:
A) parent firm's home currency for self-contained independent foreign subsidiaries. B) parent firm's home currency if the foreign subsidiary operates in a country with high inflation. C) subsidiary's local currency for self-contained, independent foreign subsidiaries.
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发表于 2009-1-17 14:59
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