| Read 'Chapter 0: Course Material' & answer the following question(s): |
| 1. | The potential for an increase or decrease in the firm's financial statements items caused by a change in exchange rates is called |
| |
| |
| |
| |
| 2. | The currency in which the parent company prepares its financial statements is the |
| |
| |
| |
| |
| 3. | The currency of the country where the foreign company is operating is the |
| |
| |
| |
| |
| 4. | The currency of the primary economic environment in which the firm operates is the |
| |
| |
| |
| |
| 5. | A change in the functional currency is accounted for |
| |
| |
| |
| |
| 6. | Previously issued financial statements |
| |
| |
| |
| |
| 7. | Gains or losses on foreign exchange contracts typically are recognized |
| |
| |
| |
| |
| 8. | If a company's books are not maintained in the functional currency, remeasurement into the functional currency is |
| |
| |
| |
| |
| 9. | The translation methodology which assumes that the only assets that should be translated at the historical rate are those carried at past exchange prices is the |
| |
| |
| |
| |
| 10. | If a foreign entity's functional currency is the US dollar and the parent's currency is also the US dollar, |
| |
| |
| |
| |
| 11. | The objective(s) of translation include |
| |
| |
| |
| |
| 12. | When the foreign currency is the functional currency, capital accounts are translated using the |
| |
| |
| |
| |
| 13. | When the foreign currency is the functional currency, assets and liabilities are translated at the _______________________ of the foreign entity |
| |
| |
| |
| |
| 14. | In the statement of cash flows, cash flows are translated based on the |
| |
| |
| |
| |
| 15. | Usually in the absence of high inflation, income statement items are translated at the |
| |
| |
| |
| |
| 16. | If a company's functional currency is a foreign currency, adjustments occurring from translating the company's financial statements into the reporting currency are |
| |
| |
| |
| |
| 17. | The translation method in which all assets and liabilities are translated at current exchange rates is known as the |
| |
| |
| |
| |
| 18. | A highly inflationary environment is one with a cumulative inflation rate of |
| |
| |
| |
| |
| 19. | The functional currency of Nash, Inc.'s subsidiary is the euro. Nash borrowed euros as a partial hedge of its investment in the subsidiary. In preparing consolidated financial statements, Nash's translation loss on its investment in the subsidiary exceeded its transaction gain on the borrowing. How should the effects of the loss and gain be reported in Nash's consolidated financial statements? |
| |
| |
| |
| |
| 20. | A foreign entity may be excluded from consolidated or combined financial statements if |
| |
| |
| |
| |
| 21. | The following is NOT required to be footnoted. |
| |
| |
| |
| |
Browse
Courses
