European Trading Company

question 38

Multiple Choice

European Trading Company. converts its foreign subsidiary financial statements using the translation process. The company's Swiss subsidiary reported the following for 2011: revenues and expenses of 14,119,000 and 7,985,000 Swiss francs, respectively, earned or incurred evenly throughout the year, dividends of 2,000,000 Swiss francs were paid during the year. The following exchange rates are available:

Translated net income for 2011 is

• A) $846,264.
• B) $699,852.
• C) $1,202,264.
• D) $1,091,852.

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Definitions:

Merit Pay System

A compensation strategy where employees receive pay increases based on their performance evaluations.

Gainsharing

A performance-based compensation program where the savings or gains from increased productivity are shared with employees.

Standard Error

A measure of the precision of a sample's mean estimate of a population mean.