Certain Balance Sheet Accounts of a Foreign Subsidiary of Parker

question 25

Multiple Choice

Certain balance sheet accounts of a foreign subsidiary of Parker Company at December 31, 2013, have been restated into U.S. dollars as follows: Assuming the functional currency of the subsidiary is the local currency, what total should be included in Parker's consolidated balance sheet at December 31, 2013, for the above items?

• A) $407,500.
• B) $418,000.
• C) $396,000.
• D) $403,500.
• E) $398,500.

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Definitions:

Trend Balance Sheet

A financial statement that shows how the assets, liabilities, and equities of a company have changed over a period of time.

Balance Sheet Item

An individual entry, such as assets, liabilities, or equity, that appears on the balance sheet, detailing a company's financial position at a specific point in time.

Total Assets

The sum of all resources owned by an entity, reflected on its balance sheet.

Return On Assets

A profitability ratio that measures how effectively a company uses its assets to generate profit, calculated as net income divided by total assets.