Q97. Given the observed appreciation or depreciation of the ruble versus the U.S. dollar, which of the following statements regarding Navratov’s leverage ratios under the temporal method compared to the all-current method is most accurate? The temporal method will lead to a: A) higher debt-to-equity ratio and a higher debt-to-capital ratio. B) lower debt-to-equity ratio and a lower debt-to-capital ratio. C) higher debt-to-equity ratio and a lower debt-to-capital ratio.
Q98. Capriati has completed his research and has summarized his findings in a report for Evert’s management. Which of the statements made in Capriati’s report is least accurate? A) The statement of cash flows for Navratov Corp should be the same under both the temporal and all-current methods of translation. B) Evert would prefer the temporal method for reporting its gross profit margin if the Russian Ruble was depreciating. C) A depreciating foreign currency will have a smaller impact on Evert’s consolidated financial statements than an appreciating foreign currency.
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发表于 2009-1-20 13:27
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