Certain Balance Sheet Accounts of a Foreign Subsidiary of the Crater

question 77

Multiple Choice

Certain balance sheet accounts of a foreign subsidiary of the Crater Co. had been stated in U.S. dollars as follows: If the U.S. dollar is the functional currency of this subsidiary, what total amount should be included in Crater's balance sheet in U.S. dollars?

• A) $688,000.
• B) $696,000.
• C) $710,000.
• D) $665,000.
• E) $679,000.

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers in a market.

Equilibrium Quantity

The quantity of goods or services supplied is exactly equal to the quantity of goods or services demanded in the market.

Price Controls

Government-imposed limits on the prices that can be charged for goods and services, intended to curb inflation or protect consumers.

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded; also known as the market-clearing price.