Certain Balance Sheet Accounts of a Foreign Subsidiary of Parker

question 10

Multiple Choice

Certain balance sheet accounts of a foreign subsidiary of Parker Company at December 31, 2021, have been restated into U.S. dollars as follows: Assuming the functional currency of the subsidiary is the U.S. dollar, what total should be included in Parker's consolidated balance sheet at December 31, 2021, for the above items?

• A) $407,500.
• B) $418,000.
• C) $396,000.
• D) $403,500.
• E) $398,500.

Conduct intracompany, intercompany, and industry comparisons of financial data to evaluate company performance.

Apply vertical analysis to interpret the relative size of financial statement items.

Understand the concept and calculation of liquidity ratios including the current ratio.

Calculate and interpret the average collection period and receivables turnover ratio.

---

Definitions:

Operating Grants

Funds provided by governments or other entities to support the operating expenses of a non-profit or other organizations, typically not requiring repayment.

Capital Contributions

Capital contributions are the funds or assets that owners or shareholders provide to a company or partnership to increase its capital base.

Primary Government

The central authority within a governmental structure, responsible for overarching governance and policy-making.

Elected Governing Board

A group of individuals selected through a voting process to oversee the management and operations of an organization or institution.