Fleming Company

question 30

Multiple Choice

Fleming Company. converts its foreign subsidiary financial statements using the translation process. The company's subsidiary in Denmark reported the following for 2011: revenues and expenses of 80,000 and 54,000 kroner, respectively, earned or incurred evenly throughout the year, dividends of 32,000 kroner were paid during the year. The following exchange rates are available:

Translated net income for 2011 is

• A) $70,200.
• B) $78,000.
• C) $(16,200).
• D) $(8,400).

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Definitions:

Operations Period

The timeframe during which specific operational activities or processes are carried out.

Financial Risk

The possibility of losing money on an investment or business operation, including risks related to market movements, credit, liquidity, and operational failures.

Actual Return

The real gain or loss experienced on an investment over a specified time period.

Expected Return

Expected return is the anticipated amount of profit or loss an investment is predicted to generate, accounting for the probability of different outcomes.