Question 1

Silver Era Co.exports Southwestern artwork to Japan.Prepare journal entries for the following transactions.

Accepted Answer

The answer of Silver Era Co.exports Southwestern artwork to Japan.Prepare...

Question 2

To prepare consolidated financial statements when a U.S.parent company has an international subsidiary,the international subsidiary's financial statements must be translated into U.S.dollars.

Accepted Answer

A) True 
 B)False

Question 3

Foreign exchange rates fluctuate due to changes in all but which of the following:

Accepted Answer

A) Political conditions. 
B) Economic conditions. 
C) Supply and demand for currencies. 
D) Expectations of future events. 
E) Whether the companies prepare financial statements under U.S.GAAP or IFRS. 
A) Political conditions. 
B) Economic conditions. 
C) Supply and demand for currencies. 
D) Expectations of future events. 
E) Whether the companies prepare financial statements under U.S.GAAP or IFRS.

Question 4

If a U.S.Company's credit sale to an international customer allows payment to be made in a foreign currency,the same exchange rate must be used for the date of sale and the cash payment date.

Accepted Answer

A) True 
 B)False

Question 5

A U.S.company makes a sale to a foreign customer receivable in 30 days in the customer's currency.The sale would be recorded by the U.S.company on the date:

Accepted Answer

A) Of sale using a projected estimate of the U.S.dollar value at payment date. 
B) Of sale using a 30-day average U.S.dollar value. 
C) Of sale using the current dollar value. 
D) Of sale using the foreign currency value. 
E) When payment is received. 
A) Of sale using a projected estimate of the U.S.dollar value at payment date. 
B) Of sale using a 30-day average U.S.dollar value. 
C) Of sale using the current dollar value. 
D) Of sale using the foreign currency value. 
E) When payment is received.

Question 6

On November 12,Higgins,Inc.,a U.S.Company,sold merchandise on credit to Kagome of Japan at a price of 1,500,000 yen.The exchange rate was $0.00837 per yen on the date of sale.On December 31,when Higgins prepared its financial statements,the exchange rate was $0.00843.Kagome paid in full on January 12,when the exchange rate was $0.00861.On December 31,Higgins should prepare the following journal entry:

Accepted Answer

A) Debit Sales $90; credit Foreign Exchange Gain $90. 
B) Debit Foreign Exchange Loss $90; credit Sales $90. 
C) Debit Accounts Receivable-Kagome $90; credit Foreign Exchange Gain $90. 
D) Debit Foreign Exchange Loss $90; Accounts Receivable-Kagome $90. 
E) No journal entry is required until the amount is collected. 
A) Debit Sales $90; credit Foreign Exchange Gain $90. 
B) Debit Foreign Exchange Loss $90; credit Sales $90. 
C) Debit Accounts Receivable-Kagome $90; credit Foreign Exchange Gain $90. 
D) Debit Foreign Exchange Loss $90; Accounts Receivable-Kagome $90. 
E) No journal entry is required until the amount is collected.

Question 7

Kreighton Manufacturing purchased on credit £50,000 worth of production materials from a British company when the exchange rate was $1.97 per British pound.At the year-end balance sheet date,the exchange rate increased to $2.76.If the liability is still unpaid at that time,Kreighton must record a:

Accepted Answer

A) gain of $39,500. 
B) loss of $39,500. 
C) gain of $138,000. 
D) loss of $138,000. 
E) neither a gain nor loss. 
A) gain of $39,500. 
B) loss of $39,500. 
C) gain of $138,000. 
D) loss of $138,000. 
E) neither a gain nor loss.

Question 8

Foreign exchange rates fluctuate due to many factors including changing political and economic conditions.

Accepted Answer

A) True 
 B)False

Silver Era Co.exports Southwestern artwork to Japan.Prepare journal entries for the following transactions.

To prepare consolidated financial statements when a U.S.parent company has an international subsidiary,the international subsidiary's financial statements must be translated into U.S.dollars.

Foreign exchange rates fluctuate due to changes in all but which of the following:

If a U.S.Company's credit sale to an international customer allows payment to be made in a foreign currency,the same exchange rate must be used for the date of sale and the cash payment date.

A U.S.company makes a sale to a foreign customer receivable in 30 days in the customer's currency.The sale would be recorded by the U.S.company on the date:

Kreighton Manufacturing purchased on credit £50,000 worth of production materials from a British company when the exchange rate was $1.97 per British pound.At the year-end balance sheet date,the exchange rate increased to $2.76.If the liability is still unpaid at that time,Kreighton must record a:

Foreign exchange rates fluctuate due to many factors including changing political and economic conditions.

Introducing Financial Statements

Financial Statements and the Accounting System

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash,fraud,and Internal Control

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments

Filters

Exam 16: International Operations

Silver Era Co.exports Southwestern artwork to Japan.Prepare journal entries for the following transactions.

To prepare consolidated financial statements when a U.S.parent company has an international subsidiary,the international subsidiary's financial statements must be translated into U.S.dollars.

Foreign exchange rates fluctuate due to changes in all but which of the following:

If a U.S.Company's credit sale to an international customer allows payment to be made in a foreign currency,the same exchange rate must be used for the date of sale and the cash payment date.

A U.S.company makes a sale to a foreign customer receivable in 30 days in the customer's currency.The sale would be recorded by the U.S.company on the date:

Kreighton Manufacturing purchased on credit £50,000 worth of production materials from a British company when the exchange rate was $1.97 per British pound.At the year-end balance sheet date,the exchange rate increased to $2.76.If the liability is still unpaid at that time,Kreighton must record a:

Foreign exchange rates fluctuate due to many factors including changing political and economic conditions.

Introducing Financial Statements

Financial Statements and the Accounting System

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash,fraud,and Internal Control

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments

Filters