Q23. On APJ's 2005 balance sheet, the level of retained earnings in U.S. dollars would be:
A) $200.
B) $300.
C) $240.
Q24. On APJ's 2005 balance sheet, the foreign currency translation adjustment in U.S. dollars would be:
A) −$220.
B) −$160.
C) −$280.
Q25. Which one of the following is a condition under which the temporal method should be used to account for foreign currency
translations?
A) APJ would have to be a mere operational extension of Dell's main operations.
B) The Australian dollar is chosen as the functional currency.
C) The cumulative Australian inflation rate over the last three years would have to be less than 100%.
Q26. Which one of the following statements correctly describes the effect on Dell's financial statements if the U.S. dollar had been
chosen as the functional currency?
A) The current rate method would apply.
B) The translation adjustment would appear as a line item on Dell's balance sheet.
C) The translation adjustment would appear as a line item on Dell's income statement.
发表于 2009-1-17 15:38
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