Answer the Following Questions Using the Information Below:
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question 121

Multiple Choice

Answer the following questions using the information below:
The top management at Watersport Company, a manufacturer of water sport equipment, is attempting to recover from a fire that destroyed some of their accounting records. The main computer system was also severely damaged. The following information was salvaged:
$\begin{array} { l r r r r } & \text { Jetski Division } & \text { Boat Division } & \text { Surfboard Division } \\\text { Sales } & \$ 7500000 & ( \mathrm { a } ) & \$ 1800000 \\\text { Net operating profit } & \$ 750000 & \$ 1080000 & \$ 450000 \\\text { Operating assets } & ( \mathrm { b } ) & ( \mathrm { c } ) & \$ 1500000 \\\text { Retum on investment } & 0.20 & 0.10 & ( \mathrm {~d} ) \\\text { Retum on sales } & ( \mathrm { e } ) & 0.12 & 0.25 \\\text { Investment turnover } & \text { (f) } & ( \mathrm { g } ) & 1.2\end{array}$
-What is the Surfboard Division's return on investment?

• A)0.45
• B)0.30
• C)0.60
• D)0.25

Identify how different types of financial statement items (assets, liabilities, equity, revenue, and expenses) are treated under both the current rate and temporal methods.

Calculate the impact of exchange rate changes on the translation and remeasurement of financial statements.

Distinguish the effects of translation and remeasurement on the income statement and balance sheet.

Recognize the treatment and reporting of translation adjustments and remeasurement gains or losses in financial statements.

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Definitions:

Flat Organizational Structure

A type of organizational configuration that has few or no levels of middle management between staff and executives, promoting faster decision-making and communication.

Customer Departmentalization

The arrangement of jobs around the needs of various types of customers.

Sales Account

A record or agreement defining the relationship and transactions between a buyer and a seller, often including terms of sale, credit limits, and purchase history.