If the Hong Kong Subsidiary of a U

question 17

Multiple Choice

If the Hong Kong subsidiary of a U.S.firm has net exposed assets of HK$ 500,000 and the HK$ changes in value from US$0.50/HK$ toUS$0.30/HK$,the U.S.firm will have a translation ________.

• A) loss HK$100,000
• B) loss US$100,000
• C) gain US$100,000
• D) gain US$ 50,000

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Definitions:

Estimating

The process of approximating the time, cost, and resources needed to complete a project.

FICA-Social Security

A U.S. government program funded by payroll taxes under the Federal Insurance Contributions Act (FICA) that provides retirement benefits, disability income, and survivor benefits.

Withheld

Typically refers to portions of an employee’s earnings that are not paid directly to the employee but instead held back for taxes, retirement contributions, or other purposes.

Matched By Employer

Contributions made by an employer towards an employee's benefit plan, such as a 401(k), that are equal to the contributions made by the employee.