Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company. Re-measurement: It is process to measure the financial results of any other currency into functional currency. To choose: The correct option.

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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 12, Problem 12.1.1E

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

To choose:The correct option.

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In accordance with U.S. generally accepted accounting principles, which translation combination is appropriate for a foreign operation whose functional currency is the U.S. dollar? Choose the correct option. Method Treatmemt of transition adjustment a. Current rate other comprehensive income b. Current rate Gain or loss in net income c. Temporal other comprehensive income d. Temporal Gain or loss in net income

Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is the naira (NGN). On December 31, 2019, the subsidiary had the following balance sheet (amounts are in thousands [000s]): Cash Inventory Land Building Accumulated depreciation 2011 2013 NGN 15,450 10,500 4,050 40,500 (20,250) 2020 Feb. 1 Paid 8,050,000 NGN on the note payable. May 1 Sold entire inventory for 16,500,000 NGN on account. June 1 Sold land for 6,050,000 NGN cash. Aug. 1 Collected all accounts receivable. August 1, 2019 December 31, 2019 February 1, 2020 May 1, 2020 Hay NGN 50,250 The subsidiary acquired the inventory on August 1, 2019, and the land and building in 2013. It issued the common stock in 2011. During 2020, the following transactions took place: Sept. 1 Signed long-term note to receive 8,050,000 NGN cash. Oct. 1 Bought inventory for 20,050,000 NGN cash. Nov. 1 Bought land for 3,050,000 NGN on account. Dec. 1 Declared and paid 3,050,000 NGN cash dividend to parent.…

Certain balance sheet accounts of a foreign subsidiary of Orchid Company have been stated in U.S. dollars as follows: Stated at Accounts receivable, current Accounts receivable, long term Land Patents Multiple Choice Problem 10-7 (Algo) (LO 10-2, 10-4) This subsidiary's functional currency is the U.S. dollar. What total should Orchid's balance sheet include for the preceding items? O $462.000 Current Rates $ 150,000 102,000 51,000 80,000 $383,000 $383.000 Historical Rates $ 170,000 172,000 55,000 85,000 $ 482,000

Answer 2

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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 12, Problem 12.1.1E

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

To choose:The correct option.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 12, Problem 12.1.1E

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

To choose:The correct option.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 12, Problem 12.1.1E

To determine