急问：level 2 free sample exam 的21.22题答案是不是有问题？ exchange, included, holding, assets

xuxu_baby

#21, the answer is 274=86+147+41, but I think that should be 192=86+147-41.

For #22, the translation gain on Kerwin's identifiable assets resulting from exchange rate changes, why flow effect is also included? I thought it should be holding effect only.

Thanks.

alascool

21题我同意你，也还没弄明白，感觉是错题。

22题题目是对的，HOLDING EFFECT和FLOW EFFECT都是因为EXCHANGE RATE CHANGE产生的，没问题。

xuxu_baby

but for #23, the effect of exchange rate changes on net sales includes only holding effects.

Does that mean that the effect of exchange rate changes on income statement items are different from that on balance sheet item?

Thank you.

LEM99

For #21, because $41 is negative in the financial statements so it is loss instead of gain. That's why

86+147-(41).