ACCT 370 Read & Interact Revsine, Collins, Johnson, Mittelstaedt, Soffer Chapter 18 solution answers

ACCT 370 Read & Interact Revsine, Collins, Johnson, Mittelstaedt, & Soffer Chapter 18 solutions complete answers

 

Consolidated financial statements that are presented to investors and creditors are

 

A controlled subsidiary which has financial statements expressed in a foreign currency complicates the consolidation process because

 

Foreign subsidiaries that are not self-sufficient and are simply extensions of the parent must be ______ using the ______.

 

The functional currency of a subsidiary located in Mexico with a parent in the United States will be the U.S. dollar in which of the following situations?

 

Which of the following are true of the current rate method?

 

Under the current rate method, the exchange rate used to convert the revenue or expense amount in the income statement

 

Which of the following are methods used to transform a subsidiary's foreign currency financial statements into the parent's currency?

 

Foreign subsidiaries that have self-contained foreign operations and are freestanding units must be ______ using the ______.

 

For foreign currency financial statements prepared on December 31st, all assets and liabilities are revalued in U.S. dollars

 

The functional currency of a freestanding foreign subsidiary is

 

Which of the following are accurate regarding the recognition and de-recognition of assets and liabilities with the current rate method?

 

Which of the following are true of translating stockholders' equity?

 

Under the current rate method, when inventory is sold, the exchange rate used to determine the amount of the de-recognition of inventory is ______ the exchange rate used to recognize the cost of goods sold expense.

 

Which of the following is true of income statement translations using the current rate method?

 

Under the current rate method, which accounts are revalued in U.S. dollar terms when the exchange rate changes?

 

Translation exposure is important because it

 

Which of the following are true of a subsidiary's functional currency?

 

True or false: Translating stockholders' equity using the current rate method consists of translating each component of stockholder's equity at the current exchange rate.

 

Bater Industries had a translation exposure of 550,000 pesos on December 1, 20X1. The exchange rate on that date was $0.052. At the end of the month, the exchange rate was $0.055. The average exchange rate for the month was $0.054. What was the amount of the translation adjustment for the month?

 

Which of the following would make it permissible to use the average exchange rate to translate income statement accounts rather than translating each transaction separately?

 

The net assets appearing on the local currency balance sheet that are subject to revaluation in U.S. dollar terms if the exchange rate changes make up the

 

The following information applies to Archer Inc. for the month of March 20X1:Sales revenue €120,000Cost of goods sold €70,000Other expenses €3,000Exchange rates: $1.17 (3/1); $1.08 (3/31); $1.11 (Average)What is the U.S. dollar value of net income for the month of March for Archer,Inc.?

 

The amount of gain or loss that arises over a period relates to the

 

Which of the following are monetary assets?

 

The functional currency of a foreign subsidiary whose operations are not self-sufficient is

 

Only monetary assets and monetary liabilities are revalued when the exchange rate changes and the resulting gains and losses are

 

For a given translation exposure, the resulting translation adjustment is equal to

 

Under the temporal method, the exchange rate used to convert the revenue or expense amount in the income statement

 

True or false: Operating margins are unaffected by the consolidation of foreign subsidiaries.

 

The following information applies to Archer Inc. for the month of March 20X1:Net asset exposure at March 1, 20X1: €120,000Change in exposure, net income recognized: €52,500Exchange rates: $1.17 (3/1); $1.08 (3/31); $1.11 (Average)What is the amount of the translation adjustment for the month of March for Archer,Inc.?

 

A subsidiary's growth rate based on its local currency financial statements was 15%. That same subsidiary's growth rate in U.S. dollars is 20%. What would explain the difference in growth rates?

 

Obligations to pay cash are

 

Which of the following causes margin percentage issues under the temporal method?

 

Which of the following are accurate regarding the recognition and de-recognition of assets and liabilities with the temporal method?

 

Foreign currency transactions are

 

Under the temporal method, foreign exchange gains and losses are part of

 

A component that earns revenue and incurs expenses within or outside the entity and produces discrete financial information that is reviewed and used by the CODM is known as a(n)

 

Consolidated financial statements that are presented to investors and credits are

 

Which of the following are quantitative thresholds used to determine whether an operating segment is reportable?

 

Which of the following are true of revenue growth rates in consolidated income statements?

 

True or false: U.S. GAAP does not require disclosures related to reportable segments.

 

Which method of financial statement transformation causes issues with margin percentages?

 

Which of the following are true of accounting for foreign currency transactions?

 

Under U.S. GAAP,

 

The three quantitative thresholds used to determine whether a segment is reported are revenue, operating profit or loss, and assets. To be deemed reportable, a segment must meet ______ criteria.

 

U.S. GAAP requires companies to disclose which of the following related to operating segments?

 

All of the foreign subsidiary's assets and liabilities are revalued in U.S. dollars over time and the resulting gain or loss is

 

Which of the following are true of the temporal method?

 

Under the current rate method, all assets and liabilities are revalued in U.S. dollar terms