The British Subsidiary of a U

question 19

Multiple Choice

The British subsidiary of a U.S. company reported cost of goods sold of 75,000 pounds (sterling) for the current year ended December 31. The beginning inventory was 10,000 pounds, and the ending inventory was 15,000 pounds. Spot rates for various dates are as follows: Assuming the pound is the functional currency of the British subsidiary, the translated amount of cost of goods sold that should appear in the consolidated income statement is:

• A) $108,750.
• B) $112,500.
• C) $114,300.
• D) $125,700.

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Definitions:

Computer Virus

Malicious software designed to replicate itself and spread to other computers, often causing damage or stealing information.

Logic Bomb

A computer virus that runs when a certain set of conditions is met, such as when a program is launched a specific number of times.

Pharming

Planting malicious code on a computer that alters the browser’s ability to find web addresses and that directs users to bogus websites.

Spyware

Malicious software that aims to gather information about a person or organization without their knowledge, often used for tracking and advertising purposes.