Q11. Which of the following situations does NOT require the use of the temporal method? The: A) foreign subsidiary is operating in a highly inflationary economy. B) functional currency is some currency other that the local currency or the U.S. dollar. C) local currency is the functional currency.
Q12. Under the temporal method, the inventory and cost of goods sold (COGS) accounts are both nonmonetary accounts. Which of the following statements is least accurate regarding these accounts?
A) The Inventory account is remeasured using the historical rate under both LIFO and FIFO. B) If the firm accounts for inventory using first in, first out (FIFO), then a more current rate will be applied to the inventory account. C) If the firm accounts for inventory using last in, first out (LIFO), then the beginning-of-period rate is used to remeasure COGS.
Q13. Which of the following statements is least accurate regarding accounting for foreign currency translations? The:
A) temporal method uses the historical exchange rate to translate non-monetary assets and liabilities into the currency of the country of the parent company. B) current rate method applies the current exchange rate to all balance sheet accounts. C) current rate method applies the average exchange rate to all income statement accounts.
Q14. Which of the following general statements is CORRECT with respect to the temporal method? Monetary assets are: A) translated at the average rate. B) not translated. C) translated at the current rate.
Q15. Which of the following general statements is most accurate with respect to the temporal method? Nonmonetary assets are translated at: A) historical rates at the time of the transaction. B) the average rate during the year. C) the current rate.
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发表于 2009-1-17 15:00
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