Certain balance sheet accounts of a foreign subsidiary of Orchid Company have been stated in U.S. dollars as follows: Current Rates Historical Rates Accounts receivable, current $ 235,000 $255,000 Accounts receivable, long term 142,000 149,000 land 71,000 74,000 Patents 101,000 106,000 $ 549,000 $ 584,000 1. This subsidiary’s functional currency is a foreign currency. What total should Orchid’s balance sheet include for the preceding items? $557,000. $554,000. $564,000. $549,000. 2. This subsidiary’s functional currency is the U.S. dollar. What total should Orchid’s balance sheet include for the preceding items? $554,000. $557,000. $564,000. $549,000
Certain balance sheet accounts of a foreign subsidiary of Orchid Company have been stated in U.S. dollars as follows: Current Rates Historical Rates Accounts receivable, current $ 235,000 $255,000 Accounts receivable, long term 142,000 149,000 land 71,000 74,000 Patents 101,000 106,000 $ 549,000 $ 584,000 1. This subsidiary’s functional currency is a foreign currency. What total should Orchid’s balance sheet include for the preceding items? $557,000. $554,000. $564,000. $549,000. 2. This subsidiary’s functional currency is the U.S. dollar. What total should Orchid’s balance sheet include for the preceding items? $554,000. $557,000. $564,000. $549,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Certain
| Current Rates | Historical Rates | |
| $ 235,000 | $255,000 | |
| Accounts receivable, long term | 142,000 | 149,000 |
| land | 71,000 | 74,000 |
| Patents | 101,000 | 106,000 |
| $ 549,000 | $ 584,000 |
1. This subsidiary’s functional currency is a foreign currency. What total should Orchid’s balance sheet include for the preceding items?
$557,000.
$554,000.
$564,000.
$549,000.
2. This subsidiary’s functional currency is the U.S. dollar. What total should Orchid’s balance sheet include for the preceding items?
$554,000.
$557,000.
$564,000.
$549,000
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