Q90. Which of the following ratios is affected by translation under the all-current method? A) Net profit margin. B) Fixed asset turnover ratio. C) Debt/Assets ratio.
Q91. Fronttalk Company is a U.S. multinational firm with operations in several foreign countries. It has a 100% stake in a German subsidiary. The foreign subsidiary's local currency has depreciated against the U.S. dollar over the latest financial statement reporting period. In addition, the German firm accounts for inventories using the last in, first out (LIFO) inventory cost-flow assumption and all purchases were made toward the end of the year. The gross profit margin as computed under the temporal method would most likely be:
A) higher than the same ratio computed under the current rate method. B) equal to the same ratio computed under the current rate method. C) lower than the same ratio computed under the current rate method.
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发表于 2009-1-20 13:21
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