Multiple Choice
_____ Parrco has a long-term intercompany receivable on its books resulting from a loan made to a foreign subsidiary several years ago. No due date is specified inasmuch as settlement is not planned in the foreseeable future. The receivable is denominated in Swiss francs. During 2006, the U.S. dollar strengthened. Parrco uses the foreign currency unit of measure approach. At 12/31/06, Parrco should
A) Adjust the intercompany receivable downward and debit OCI-Translation Adjustment.
B) Adjust the intercompany receivable downward and debit FX Transaction Loss.
C) Adjust the intercompany receivable downward and debit Investment in Subsidiary.
D) Make no adjustment to the Intercompany Receivable account.
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
Q6: Under the current rate method, all current
Q7: A foreign subsidiary that has liabilities exceeding
Q8: When the current rate method is used,
Q9: _ On 1/1/06, a foreign unit of
Q10: _ Under the current rate method, what
Q12: _ Parco's foreign subsidiary had the following
Q13: _ Under the current rate method of
Q14: _ Under the current rate method of
Q15: _ Pemex's Swiss subsidiary, Semex, had stockholders'
Q16: _ Pavax has intercompany sales to its