Brown Enterprises, a Subsidiary of Biden Company Based in Delaware

question 48

Multiple Choice

Brown Enterprises, a subsidiary of Biden Company based in Delaware, reported the following information at the end of its first year of operations (all in British pounds) : assets--483,000; expenses--360,000; liabilities--105,000; capital stock--90,000, revenues--648,000. Relevant exchange rates are as follows:

As a result of the translation process, what amount is recorded on the financial statements as the translation adjustment?

• A) $34,020 debit adjustment
• B) $34,020 credit adjustment
• C) $11,520 debit adjustment
• D) $11,520 credit adjustment

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Definitions:

Visual Acuity

The clarity or sharpness of vision, often measured as the ability to discern letters or numbers at a given distance.

Wavelength

The distance between corresponding points of two consecutive waves, commonly associated with the characteristics of waves in physics, such as light and sound.

Axons

Long, threadlike structures of neurons that carry nerve impulses away from the cell body.

Dendrites

Branched extensions of a neuron that receive signals from other neurons and transmit them toward the cell body.