Certain Balance Sheet Accounts of a Foreign Subsidiary of the Tulip

question 63

Multiple Choice

Certain balance sheet accounts of a foreign subsidiary of the Tulip Co. had been stated in U.S. dollars as follows: If the subsidiary's local currency is its functional currency, what total amount should be included in Tulip's balance sheet in U.S. dollars?

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

---

Definitions:

Natural Resources

Naturally occurring items, including minerals, woodlands, aquatic sources, and fertile earth, that can be leveraged for financial gains.

Financial Institutions

Organizations that provide financial services, such as banks, credit unions, insurance companies, and investment firms.

Capital

Financial assets or the financial value of assets, such as factories and machinery, essential for producing goods and services.

National Income

The total value of all goods and services produced by a country's economy over a specific period, usually measured annually.