REFERENCE: Ref.10_05 a Subsidiary of Porter Inc. ,A U.S.company,was Located in a in a Foreign

question 87

Multiple Choice

REFERENCE: Ref.10_05
A subsidiary of Porter Inc. ,a U.S.company,was located in a foreign country.The functional currency of this subsidiary was the stickle (§) .The subsidiary acquired inventory on credit on November 1,2008,for §120,000 that was sold on January 17,2009 for §156,000.The subsidiary paid for the inventory on January 31,2009.Currency exchange rates between the dollar and the stickle were as follows:

-Under the temporal method,retained earnings would be restated at what rate?

• A)Beginning of the year rate.
• B)Average rate.
• C)Current rate.
• D)Historical rate.
• E)Composite amount.

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Definitions:

Three-Component Model

A model in psychology that views attitude as having cognitive, affective, and behavioral components.

Attitudes

Psychological tendencies expressed by evaluating particular entities with some degree of favor or disfavor, reflecting how individuals think, feel, and are inclined to act.

Information Integration Theory

The idea that a person’s attitude can be estimated by averaging across the positive and negative ratings of the object.

Cognitive Algebra

Approach to the study of impression formation that focuses on how people combine attributes that have valence into an overall positive or negative impression.