DeGaulle Enterprises,a Subsidiary of Clinton Company Based in New York,reported

question 56

Multiple Choice

DeGaulle Enterprises,a subsidiary of Clinton Company based in New York,reported the following information at the end of its first year of operations (all in French francs) : assets--4,790,000;expenses--6,500,000;liabilities--2,950,000;capital stock--1,200,000,revenues--7,140,000.Relevant exchange rates are as follows: As a result of the translation process,what amount is recorded on the financial statements as the translation adjustment?

• A) $1,287 debit adjustment
• B) $1,287 credit adjustment
• C) $6,080 debit adjustment
• D) $6,080 credit adjustment

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Definitions:

Depression

A mood disorder that causes a persistent feeling of sadness and loss of interest, affecting how one feels, thinks, and handles daily activities.

Internal

Pertaining to or situated within something; inner, especially referring to processes or phenomena occurring within an entity or organism.

Stable

Referring to a condition or situation that is not undergoing significant change or variation and is steady or unchanging over time.

Global

Pertaining to or involving the entire world; worldwide in scope or application.