Lennon Ltd Has Two Foreign Operations Based in Japan Exchange Rate Information Is

question 5

Multiple Choice

Lennon Ltd has two foreign operations based in Japan.The following information was extracted from the foreign operation's accounts for the period ended 30 June 2015: $$\begin{array} { | l | r | r | } \hline \text { In Japanese yen } ( ¥ ) & \text { Yoko Ltd } & \text { Ono Ltd } \\\hline \text { Machinery (at cost purchased 1 July 2013) } & 85000 & 100000 \\\hline \text { Inventory on hand (purchased second quarter 2015) } & 1000 & 25000 \\\hline \text { Depreciation expense-machinery } & 8200 & 10000 \\\hline \text { Land (purchased 1 July 2013, revalued 1 June 2015) } & 150000 & 200000 \\\hline\end{array}$$ Exchange rate information is:
$$\begin{array} { | l | l | } \hline \text { July } 2013 & \text { A\$1.00 } = ¥ 74 \\\hline \text { Average for year ended } 30 \text { June } 2015 & \text { A\$1.00 } = ¥ 65 \\\hline 1 \text { June } 2015 & \text { A\$1.00 } = ¥ 68 \\\hline \text { Second quarter } 2015 & \text { A\$1.00 } = ¥ 67 \\\hline 30 \text { June } 2015 & \text { A\$1.00 } = ¥ 61 \\\hline\end{array}$$ The translation from Japanese yen to Australian dollars resulted in the following balances (rounded to the nearest ¥000) :
$$\begin{array} { | l | r | r | } \hline \text { In Japanese yen } ( ¥ \text { ) } & \text { Yoko Ltd } & \text { Ono Ltd } \\\hline \text { Machinery (at cost purchased 1 July 2013) } & 1149 & 1639 \\\hline \text { Inventory on hand (purchased second quarter 2015) } & 239 & 410 \\\hline \text { Depreciation expense-machinery } & 111 & 154 \\\hline \text { Land (purchased 1 July 2013, revalued 1 June 2015) } & 2205 & 3278 \\\hline\end{array}$$ Which of the following translation processes were applied to Yoko Ltd and Ono Ltd,respectively,for the year ended 30 June 2015?

• A) functional currency; presentation currency
• B) functional currency; functional currency
• C) presentation currency; functional currency
• D) presentation currency; presentation currency

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Definitions:

PQRST

An acronym used in the assessment of pain, standing for Provocation/Palliation, Quality/Quantity, Region/Radiation, Severity Scale, and Timing.

Chest Pain

A sensation of discomfort or pain in the chest area, which can be a symptom of various underlying conditions, ranging from indigestion to heart attack.

Quality

The degree of excellence or superiority of something, often used in the context of products, services, or healthcare outcomes.

PQRST

An acronym used as a mnemonic to guide the assessment of pain, standing for Provocation/Palliation, Quality, Region/Radiation, Severity, and Timing.