The Following Balance Sheet Accounts of a Foreign Subsidiary at December

question 17

Multiple Choice

The following balance sheet accounts of a foreign subsidiary at December 31, 2017, have been translated into U.S. dollars as follows: What total should be included in the translated balance sheet at December 31, 2017, for the above items? Assume the U.S. dollar is the functional currency.

• A) $1,270,000
• B) $1,288,000
• C) $1,300,000
• D) $1,354,000

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Definitions:

Management Decision

A choice made by the leadership of an organization that influences its operations or strategy.

Consumer Demand

The desire of purchasers, consumers, clients, or buyers for a product or service in the marketplace.

Long-Term

Pertains to a period extending generally beyond one year, often related to investments, financial planning, or obligations.

Scenario Analysis

A process of analyzing future events by considering alternative possible outcomes (scenarios), often used in investment planning and risk management.