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Foreign exchange gain or loss is recognized for the

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14.Foreign Exchange Gain or Loss is recognized for the difference in the exchange rate between the transaction date and thebalance sheet date.
15.Foreign Exchange Gain or Loss is recognized if the amount paid or received in functional currency is not equal to thecarrying value of related payable or receivable.
16.Companies can hedge firm commitments but not forecasted transactions.
17.Foreign Exchange gains and losses resulting from speculation are deferred.
18.Options are contracts that give a purchaser the right, but not the obligation.
19.Foreign Exchange gains or loss on fair value hedges are reported as part of OCI in Equity.
20.Mental break time. The answer is True.Answer: TrueTheories:1.Non-controlling interest in consolidated income is never affected by:
2.In determining controlling interest in consolidated income in the consolidated financial statements, unrealizedintercompany profit on inventory acquired by a parent from its subsidiary should:
3.The sale of inventory items by a parent company to an affiliated company:a.enters the consolidated revenue computation only if the transfer was the result of arm's length bargaining.b.affects consolidated net income under a periodic inventory system but not under a perpetual inventory systemc.does not result in consolidated income until the merchandise is sold to outside parties.d.does not require working paper adjustment if the merchandise was transferred at cost.Answer: C

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Term
Spring
Professor
N/A
Tags
Balance Sheet, S Company

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