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Exam Questions And Answers
A US parent has a subsidiary in Singapore. If the parent's functional currency is the US dollar and the subsidiary's functional currency is the Hong Kong dollar, conversion of the subsidiary's accounts to US dollars involves - correct answer ✅Both remeasurement and translation When translating a subsidiary's accounts to the parent's reporting currency, which of the following transactions or adjustments affect its exposure to translation gains and losses? - correct answer ✅Recording amortization expense on intangible assets When remeasuring a subsidiary's accounts to its functional currency, which of the following transactions or adjustments affect its exposure to remeasurement gains and losses? - correct answer ✅Equipment purchases A US parent owns a subsidiary in the UK. The subsidiary purchases equity securities for cash. How does this transaction affect the subsidiary's exposure to remeasurement or translation gains or losses? - correct answer ✅Neither remeasurement nor translation exposure changes
Exam Questions And Answers
In the consolidated financial statements, remeasurement gains and losses for an international subsidiary are reported - correct answer ✅In consolidated income In the consolidated financial statements, translation gains and losses for an international subsidiary are reported - correct answer ✅In consolidated other comprehensive income A US parent has a wholly-owned subsidiary in Switzerland. The subsidiary's accounts are reported in Swiss francs. Under what circumstances will the US parent translate the subsidiary's accounts from Swiss francs to US dollars? - correct answer ✅The subsidiary's functional currency is the Swiss franc A US company has several international subsidiaries, which it converts to US dollars by remeasuring the subsidiaries' local currency accounts directly into US dollars. Which statement is true concerning these subsidiaries? - correct answer ✅Their functional currency is the US dollar
Exam Questions And Answers
US dollars on the US company's balance sheet using what exchange rate? - correct answer ✅the rate when the inventory was delivered A US company sells merchandise to customers in Hong Kong. The merchandise is priced in Hong Kong dollars, and customers generally take 15 days to pay for the merchandise. The US company's sales revenue for these sales, reported on its income statement, is expressed in US dollars converted at - correct answer ✅The rate when the sales were made Legal guidelines for partnership organization and operations are found in - correct answer ✅The Uniform Partnership Act The two major types of partnerships are - correct answer ✅General or limited partnership Most professional organizations, such as CPA firms, organize as - correct answer ✅Limited liability partnerships
Exam Questions And Answers
In a limited partnership, the limited partners - correct answer ✅Have no right to participate in management Which statement is false concerning attributes of limited partnerships? - correct answer ✅Limited partners have no right to a specified share of partnership income or loss In a limited partnership, limited liability means a limited partner's liability for partnership debts is - correct answer ✅limited to their investment in the partnership The Insider Trading Sanctions Act of 1984 allows the SEC to assess fines for inappropriate use of nonpublic information in amounts up to - correct answer ✅three times the amount of insiders' gains The Emergency Economic Stabilization Act of 2008 - correct answer ✅Allowed the government to bail out banks and other organizations
Exam Questions And Answers
correct answer ✅The information provides adequate disclosure of material facts concerning the company and the securities it proposes to sell In a registration statement, a comfort letter is written by an accountant and provides negative assurance regarding - correct answer ✅Unaudited financial statement information The basic SEC form used for the registration of new security issues is - correct answer ✅Form S- In which type of underwriting does the company issuing new shares bear none of the risk that market will not buy its stock at the asking price? - correct answer ✅Firm commitment underwriting Regulations S-X and S-K provide the rules for different aspects of periodic filings. Which statement below is true? - correct answer ✅Regulation S-X governs the financial statements and supplementary financial information in periodic filings, while Regulation S-K governs all other items in periodic filings
Exam Questions And Answers
Section 302 of the Sarbanes-Oxley Act requires a company's CEO and CFO to certify that the annual and quarterly financial reports filed with the SEC - correct answer ✅Fairly present the company's results of operations and financial condition SEC registrants must file information on special events of significance to investors, such as changes in control or material impairments, using - correct answer ✅Form 8-K Events requiring registrants to file a Form 8-K include all of the following except - correct answer ✅a change in accounting method The Sarbanes-Oxley Act requires the SEC to review the periodic filings of each registered company - correct answer ✅at least every three years
Exam Questions And Answers
Insider trading is - correct answer ✅Any trading in company securities based on information not available to the public Matters of shareholder action, communicated through proxy statements, include all of the following issues except - correct answer ✅approval of the company's business plan The Dodd-Frank Act of 2010 provides for stronger regulation of - correct answer ✅the financial services industry The Dodd-Frank Act established the following new regulatory organizations except - correct answer ✅The FRAud Group A partnership has four partners. One partner retires and is paid using partnership assets. The payment made to a retiring partner - correct answer ✅Is defined by either the partnership agreement or as agreed at the time of retirement
