Q99. Which of the following statements regarding the effects of translation on financial ratios is least accurate?
A) Return ratios are affected because both the numerator and denominator are affected. B) Fixed assets are higher under the temporal method if the local currency appreciates. C) Depreciation is distorted in the temporal method.
Q100. Hann Company is a U.S. multinational firm with operations in several foreign countries. Hann has a 100% stake in a French subsidiary. The foreign subsidiary's local currency has appreciated against the U.S. dollar over the latest financial statement reporting period. In addition, the French firm accounts for inventories using the first in, first out (FIFO) inventory cost-flow assumption. The gross profit margin as computed under the current rate method would most likely be:
A) higher than the gross profit margin as computed under the temporal method. B) lower than the gross profit margin as computed under the temporal method.
C) equal to the gross profit margin as computed under the temporal method.
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发表于 2009-1-20 13:28
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