REFERENCE: Ref.10_04 Certain Balance Sheet Accounts of a Foreign Subsidiary of the of the Tulip

question 62

Multiple Choice

REFERENCE: Ref.10_04
Certain balance sheet accounts of a foreign subsidiary of the Tulip Co.had been stated in U.S.dollars as follows:
-If a foreign currency is the functional currency of this subsidiary,what total should have been included in Tulip's balance sheet for the preceding items?

• A)$609,000.
• B)$658,000.
• C)$602,000.
• D)$630,000.
• E)$616,000.

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Definitions:

Comparative Balance Sheet

A financial statement that presents a company's assets, liabilities, and equity at two or more points in time, allowing for comparison and trend analysis.

Operating Activities

Operating activities include the primary revenue-generating activities of a business, as well as other activities that are not investing or financing activities, reflecting the company's core operations cash flow.

Comparative Balance Sheet

A financial statement that provides a snapshot of a company's assets, liabilities, and equity at two or more points in time for comparison.

Cash Dividends

Payments made by a corporation to its shareholders from its profits in the form of cash.