Reading 24: Multinational Operations LOS d ～ Q65-67 relative, currency, class, method

mayanfang1

Q65. The U.S. dollar has been appreciating relative to the local currency over the past year. Using current-rate method

     to translate a foreign subsidiary's financial statements to U.S. dollars will most likely have which of the following

effects on the long-term debt to equity ratio (LTD/E) relative to what the ratio would have been without the effects

of translation?

A)   The ratio will not change.

B)   The ratio will fall.

C)   The ratio will rise.

Q66. The U.S. dollar has been depreciating relative to the local currency over the past year. The use of the current rate

     method to translate a foreign subsidiary's financial statements to U.S. dollars will most likely have which of the     

     following effects on the operating profit margin (EBIT/S) relative to what the ratio would have been without the

     effects of translation?

A)   The ratio will fall.

B)   There will be no affect on the ratio.

C)   The ratio will rise.

Q67. The U.S. dollar has been appreciating relative to the local currency over the past year. The use of the temporal

     method to translate a foreign subsidiary's financial statements to U.S. dollars will most likely have which of the

     following effects on the fixed-asset turnover ratio (S/FA) relative to what the ratio would have been without the

     effects of translation assuming no new fixed assets were purchased throughout the year?

A)   The ratio will fall.

B)   There will be no effect on the ratio.

C)   The ratio will rise.

BlackWatch

thx

suodi

[em50]

vinthus

abc

maxsimax

thanks

mcdullpong

 thks

yan_superman

 XIE

jrxx99

踩踩踩踩踩踩踩踩踩踩踩

twinsen1

thanks

hartzhou

thanks