Florence Enterprises,a Subsidiary of Verona Company Based in New York,reported

question 51

Multiple Choice

Florence Enterprises,a subsidiary of Verona Company based in New York,reported the following information at the end of its first year of operations (all in euros) : assets--1,320,000; expenses--340,000; liabilities--880,000; capital stock--80,000,revenues--400,000.Relevant exchange rates are as follows:

As a result of the translation process,what amount is recorded on the financial statements as the translation adjustment?

• A)$25,200 debit adjustment
• B)$34,800 debit adjustment
• C)$34,800 credit adjustment
• D)$25,200 credit adjustment

---

Definitions:

Forecasting Realities

The process of making predictions based on data and recognizing the limitations and uncertainties associated with future events.

Market Demands

The total amount of a product or service that consumers are willing and able to purchase at a given price.

Strength Relationship

The degree to which two variables are related or associated with each other, often used in the context of correlation analysis.

Forecasting Time Horizons

The periods into which future predictions or plans for business, economic, or other activities are divided, ranging from short-term to long-term.