Acc 401 Week 09 Quiz

ACC 401 WEEK 09 QUIZ

A+ Graded Tutorial Available At:

http://hwsoloutions.com/?product=week-09-quiz

Visit Our website: http://hwsoloutions.com/

Product Description

ACC 401 Week 9 Quiz,

ACC 401 Week 9 Quiz – Strayer

Chapter 13

Translation of Financial Statements of Foreign Affiliates

Multiple Choice

1. When translating foreign currency financial statements for a company whose functional currency is the U.S. dollar, which of the following accounts is translated using historical exchange rates?

Notes Payable Equipment

a. Yes Yes

b. Yes No

c. No No

d. No Yes

2. Under the temporal method, monetary assets and liabilities are translated by using the exchange rate existing at the:

a. beginning of the current year.

b. date the transaction occurred.

c. balance sheet date.

d. None of these.

3. The process of translating the accounts of a foreign entity into its functional currency when they are stated in another currency is called:

a. verification.

b. translation.

c. remeasurement.

d. None of these.

4. Which of the following would be restated using the average exchange rate under the temporal method?

a. cost of goods sold

b. depreciation expense

c. amortization expense

d. None of these

5. Paid-in capital accounts are translated using the historical exchange rate under:

a. the current rate method only.

b. the temporal method only.

c. both the current rate and temporal methods.

d. neither the current rate nor temporal methods.

6. Which of the following would be restated using the current exchange rate under the temporal method?

a. Marketable securities carried at cost.

b. Inventory carried at market.

c. Common stock.

d. None of these.

7. The translation adjustment that results from translating the financial statements of a foreign subsidiary using the current rate method should be:

a. included as a separate item in the stockholders’ equity section of the balance sheet.

b. included in the determination of net income for the...