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.

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Definitions:

Fractures

Breaks in rock or bone, often as a result of stress exceeding the material's internal strength.

Granite

A coarse-grained igneous rock composed mainly of quartz, feldspar, and mica, often used in construction.

Irrigation

The artificial application of water to land to assist in the growing of crops and vegetation.

Domestic Use

Refers to the consumption of resources, such as water or energy, within a household for daily activities such as drinking, cooking, heating, and bathing.