Reference no: EM132559498

Question 1: For integrated foreign subsidiaries, foreign exchange adjustments are reported

a. in net income.
b. in other comprehensive income.
c. as an adjustment to retained earnings.
d. as an adjustment to contributed surplus.

Question 2: For a self-sustaining subsidiary, inventory should be translated at the

a. historical rate, using the lower of cost or net realizable value.
b. historical rate, without using the lower of cost or net realizable value.
c. closing rate, using the lower of cost or net realizable value.
d. closing rate, without using the lower of cost or net realizable value.

Question 3: Under ASPE, where are gains/losses resulting from translating a self-sustaining foreign subsidiary reported?

a. Under net income
b. Under other comprehensive income
c. Under retained earnings
d. As a separate component under shareholders' equity

Question 4: A food bank uses some of its cash donations to buy food to distribute to needy families. How should its inventory of food be valued?

a. At fair value
b. At the lower of cost or net realizable value
c. At the lower of cost or replacement cost
d. At a nominal value