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Chapter 12

Terms in this set (10)

Which rate would we use to remeasure the company's equipment at year-end (on 12/3) if the equipment were purchased on 6/30?
1.90 the rate on 6/30
Refer to the preceding information. On January 1, 2015, how much goodwill was acquired by Archer Spy Supplies?
$31,480
A foreign subsidiary's functional currency is its local currency, which has not experienced significant inflation. The weighted-average exchange rate for the current year would be the appropriate exchange rate for translating
Sales: yes, Wages, yes
When remeasuring foreign currency financial statements into the functional currency, which of the following items would be remeasured using a historical exchange rate?
inventories carried at cost
Which of the following conditions suggest that USD MUST be the functional currency? 500% over 2 years, weakened for past 3 years, or conducts most business in foriegn currency.
500% over 3 years
At what rates should the following balance sheet accounts in the foreign currency financial statements be restated into U.S. dollars? Assume the USD is the functional currency.
Equipment and ACUM DEP @historical
Peralta's Halloween Decor has a significant presence in countries in Europe, frequently conducting business in Euros. Peralta is attempting to determine what its subsidiary's functional currency should be. A manager has gathered the following information: Labor and materials are paid in Euros, subsidiaries are in Euros, cash flows do not effect cash flow. What is functional currency if Peralta conducts business in USD?
Euro
What total should be included in Scoops Ahoy's balance sheet for December 31, 2021, for these items? Assume the foreign currency is the functional currency.
215,000
What are non monetary assets?
...
Which rate would we use to translate the company's equipment at year-end (on 12/3) if the equipment were purchased on 6/30?
1.82 the rate at year end
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