far 16.2.3 1162021 a

  1. A foreign currency transaction gain or loss  is included in the income statement in the -------------------------------------. If the monetary aspect of the transaction has not yet occurred at the end of the reporting period, monetary items (accounts payable and accounts receivable) are measured at the period-end exchange rate.
    A foreign currency transaction gain or loss  is included in the income statement in the period the exchange rate changes. If the monetary aspect of the transaction has not yet occurred at the end of the reporting period, monetary items (accounts payable and accounts receivable) are measured at the period-end exchange rate.
  2. A foreign currency transaction gain or loss  is included in the income statement in the period the exchange rate changes. If the monetary aspect of the transaction has not yet occurred at the end of the reporting period, monetary items (accounts payable and accounts receivable) are measured at the --------------------------------.
    A foreign currency transaction gain or loss  is included in the income statement in the period the exchange rate changes. If the monetary aspect of the transaction has not yet occurred at the end of the reporting period, monetary items (accounts payable and accounts receivable) are measured at the period-end exchange rate.
  3. The method used to convert foreign currency amounts into units of the reporting currency is the --------------------------------------------------------------------.
    The method used to convert foreign currency amounts into units of the reporting currency is the functional currency translation approach (current-rate method).
  4. -------------------------- are translated at the exchange rate at fiscal year end.
    Assets and liabilities are translated at the exchange rate at fiscal year end.
  5. Assets and liabilities are translated at the -----------------------------------------
    Assets and liabilities are translated at the exchange rate at fiscal year end.
  6. Revenues, expenses, gains, and losses are translated at the --------------------------------------------------------. However, a weighted-average rate for the period may be used for these items.
    Revenues, expenses, gains, and losses are translated at the rates in effect when they were recognized. However, a weighted-average rate for the period may be used for these items.
  7. Revenues, expenses, gains, and losses are translated at the rates in effect when they were recognized. However, a ---------------------- rate for the period may be used for these items.
    Revenues, expenses, gains, and losses are translated at the rates in effect when they were recognized. However, a weighted-average rate for the period may be used for these items.
  8. Foreign currency translation adjustments for a foreign operation (translation gains and losses) are reported in other ----------------------------------.
    Foreign currency translation adjustments for a foreign operation (translation gains and losses) are reported in other comprehensive income (OCI).
  9. If the books of a foreign entity are maintained in a currency not the functional currency, foreign currency amounts must be ------------------- into the functional currency using the temporal method.
    If the books of a foreign entity are maintained in a currency not the functional currency, foreign currency amounts must be remeasured into the functional currency using the temporal method.
  10. If the books of a foreign entity are maintained in a currency not the functional currency, foreign currency amounts must be remeasured into the functional currency using the --------------------------.
    If the books of a foreign entity are maintained in a currency not the functional currency, foreign currency amounts must be remeasured into the functional currency using the temporal method.
  11. If the books of a foreign entity are maintained in a currency not the functional currency, foreign currency amounts must be remeasured into the -------------------------- using the temporal method.
    If the books of a foreign entity are maintained in a currency not the functional currency, foreign currency amounts must be remeasured into the functional currency using the temporal method.
  12. -------------------------- balance sheet items and related revenue, expense, gain, and loss amounts are remeasured at the historical rate.
    Nonmonetary balance sheet items and related revenue, expense, gain, and loss amounts are remeasured at the historical rate.
  13. Nonmonetary balance sheet items and related revenue, expense, gain, and loss amounts are remeasured at the -----------------------------.
    Nonmonetary balance sheet items and related revenue, expense, gain, and loss amounts are remeasured at the historical rate.
  14. The ----------------------------- is the currency in which an entity prepares its financial statements.
    The reporting currency is the currency in which an entity prepares its financial statements.
  15. The reporting currency is the currency in which an entity prepares its -----------------------------.
    The reporting currency is the currency in which an entity prepares its financial statements.
  16. Foreign currency transaction gains or losses ordinarily should be included in the determination of -------------------.
    Foreign currency transaction gains or losses ordinarily should be included in the determination of net income.
  17. Foreign currency translation gains and losses are reported as -----------------------------------------in the statement of comprehensive income for the period in which they occurred.
    Foreign currency translation gains and losses are reported as an item of other comprehensive income in the statement of comprehensive income for the period in which they occurred.
  18. Foreign currency translation gains and losses are reported as an item of other comprehensive income in the statement of comprehensive income for the -----------------------------------------------.
    Foreign currency translation gains and losses are reported as an item of other comprehensive income in the statement of comprehensive income for the period in which they occurred.
  19. If the books of a foreign entity are maintained in a currency not the functional currency, foreign currency amounts must be remeasured into the functional currency using the --------------------.
    If the books of a foreign entity are maintained in a currency not the functional currency, foreign currency amounts must be remeasured into the functional currency using the temporal method.
  20. If the books of a foreign entity are maintained in a currency not the functional currency, foreign currency amounts must be -------------------------- into the functional currency using the temporal method.
    If the books of a foreign entity are maintained in a currency not the functional currency, foreign currency amounts must be remeasured into the functional currency using the temporal method.
  21. ------------------ is a firm’s ability to pay its current obligations as they come due and thus remain in business in the short run.---------------- measures the ease with which assets can be converted to cash.
    Liquidity is a firm’s ability to pay its current obligations as they come due and thus remain in business in the short run. Liquidity measures the ease with which assets can be converted to cash.
  22. What is the current ratio?
    current assets 

    ----------------------------------------------

    current liabilities
  23. What is the Quick ratio or acid test
    cash and equivalents + marketable securities + net receivables 

    ------------------------------------------------

    Current liabilities
  24. where do a numerator and denominator go in a fraction?
    numerator 

    ----------------

    denominator
  25. What is the 3? 

    3/4
    The Numerator
  26. What is the 4? 

    3/4
    The Denominator
  27. If a ratio is less than 1.0, the numerator is ------------ than the denominator.
    If a ratio is less than 1.0, the numerator is lower than the denominator.
  28. If a ratio is equal to 1.0, the numerator and denominator are the -----------------
    If a ratio is equal to 1.0, the numerator and denominator are the same
  29. If a ratio is greater than 1.0, the numerator is ------------ than the denominator.
    If a ratio is greater than 1.0, the numerator is higher than the denominator.
  30. The ------------------------------, equals current assets minus current inventory, divided by current liabilities.
    The acid test, or quick ratio, equals current assets minus current inventory, divided by current liabilities.
  31. The acid test, or quick ratio, equals ---------------------- ---------------------------, divided by current liabilities.
    The acid test, or quick ratio, equals current assets minus current inventory, divided by current liabilities.
  32. The acid test, or quick ratio, equals current assets minus current inventory, divided-------------------------------------------------
    The acid test, or quick ratio, equals current assets minus current inventory, divided by current liabilities.
  33. An increase in current assets (the numerator) or decrease in current liabilities (the denominator) would cause the -------------------------.
    An increase in current assets (the numerator) or decrease in current liabilities (the denominator) would cause the ratio to increase.
  34. On December 15, a U.S. company bought inventory from a European supplier. Payment is required in euros in 30 days. What exchange rate should be used to value the payable for this transaction at year end?
    Exchange rate at year end.
  35. Assets and liabilities are translated at the --------------------------------------------------.
    Assets and liabilities are translated at the exchange rate at the balance sheet date.
  36. Income statement items (revenues, expenses, gains, and losses) are translated at the rates in effect when they were recognized. However, a ----------------------------------- for the period may be used for these items.
    Income statement items (revenues, expenses, gains, and losses) are translated at the rates in effect when they were recognized. However, a weighted-average rate for the period may be used for these items.
  37. ------------------------------ is the accounting method in which an international business translates the results of its foreign subsidiaries into domestic currency terms so that they can be recorded in the books of account.
    Foreign currency translation is the accounting method in which an international business translates the results of its foreign subsidiaries into domestic currency terms so that they can be recorded in the books of account.
  38. ------------------------- is a process to measure financial results that are denominated or stated in another currency into the functional currency
    remeasurement is a process to measure financial results that are denominated or stated in another currency into the functional currency
  39. ----------------------- is used to express financial results of a business unit in the parent company's functional currency
    translation is used to express financial results of a business unit in the parent company's functional currency
Author
Joens1313
ID
354211
Card Set
far 16.2.3 1162021 a
Description
far 16.2.3 1162021 a
Updated