ADVANCED FINANCIAL ACCOUNTING EXAM 2023 VERIFIED QUESTIONS AND ANSWERS
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ADVANCED FINANCIAL
Institution
ADVANCED FINANCIAL
ADVANCED FINANCIAL
ACCOUNTING EXAM 2023 VERIFIED
QUESTIONS AND ANSWERS
A foreign subsidiary of the Bart Corporation has certain balance sheet accounts on
December 31, 20X2. Information relating to these accounts in U.S. dollars is as follows:
Restated at
Current Rates Historical Rates
Market...
ADVANCED FINANCIAL
ACCOUNTING EXAM 2023 VERIFIED
QUESTIONS AND ANSWERS
A foreign subsidiary of the Bart Corporation has certain balance sheet accounts on
December 31, 20X2. Information relating to these accounts in U.S. dollars is as follows:
Restated at
Current Rates Historical Rates
Marketable (AFS and Trading) Securities
$ 75,000 $ 85,000
Inventories, carried at average cost $ $ 600,000 $ 700,000
Refundable Deposits
$ 25,000 $ 30,000
Goodwill
$ 55,000 $ 70,000
Total
$ 755,000 $ 885,000
What total should be included in Bart's balance sheet on December 31, 20X2, as a
result of the preceding information?
Foreign Currency is Functional Currency
a.) $755,000
b.) $880,000
c.) $780,000
d.) $870,000
U.S. Dollar is Functional Currency
a.) $755,000
b.) $780,000
c.) $880,000
d.) $870,000 - a.) $755,000, d.) $870,000
,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 to Customers Wages Expense
a.) No. No.
b.) Yes. Yes.
c.) No. Yes.
d.) Yes. No. - b.) Yes, Yes.
A wholly owned foreign subsidiary of Nick Inc. has certain expense accounts for the
year ended December 31, 20X4, stated in local currency units (LCU) as follows:
LCU
Depreciation of Equipment (related assets were purchased January 1, 20X2) 120,000
Provision for Uncollectible Accounts 80,000
Rent 200,000
The exchange rates at various dates were as follows:
Dollar Equivalent of 1 LCU
January 1, 20X2 0.50
December 31, 20X4 0.40
Average, 20X4 0.44
What total dollar amount should be included in Nick's income statement to reflect the
preceding expenses for the year ended December 31, 20X4?
Foreign Currency
is Functional Currency U.S. Dollar
is Functional Currency
a.) $183,200
b.) $176,000
c.) $168,000
d.) $160,000
a.) $168,000
b.) $160,000
c.) $176,000
d.) $183,200 - b.) $176,000, d.) $183,200
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