If two or more operating segments have essentially the same

Reference no: EM13572608

1.True or False. If two or more operating segments have essentially the same business activities in essentially the same economic environments, information for those individual segments may be combined.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

2. According to the FASB, the objective of segment reporting is to provide information to help users of financial statements:

3. An operating segment is defined as a component of an enterprise if:

4. Explain the difference between the spot rate and the forward rate.

5. [10 points] Lawrence Company ordered parts costing FC100,000 from a foreign supplier on May 12 when the spot rate was $0.20 per FC. A one-month forward contract was signed on that date to purchase FC100,000 at a forward rate of $0.21. The forward contract is properly designated as a fair value hedge of the FC100,000 firm commitment. On June 12, when the company receives the parts, the spot rate is $0.23. At what amount should Lawrence Company carry the parts inventory on its books?

6. On December 1, 2013, Dresden Company (a U.S. company located in Albany, NY) purchases inventory from a foreign supplier for 60,000 local currency units (LCU). Dresden will pay in 90 days after it sells this merchandise. It makes sales rather quickly and pays this entire obligation on January 28, 2014. Currency exchange rates for 1 LCU are as follows:

a. December 1, 2013 $0.88

b. December 31, 2013 $0.82

c. January 28, 2014 $.90

Prepare all journal entrie for Dresden Company in connection with the purchase and payment.

Reference no: EM13572608

Questions Cloud

Suppose a firm has net income of 50 dividends of 15 assets : suppose a firm has net income of 50 dividends of 15 assets of 1200 and a debt-equity ratio of 3.5. what is the

The financial statements for joseph corporation contained : the financial statements for joseph corporation contained the following information.accounts receivable5000sales

What is the rally effect what are the essential elements : what is the rally effect? what are the essential elements needed to produce the rally effect? how were these conditions

Which of the following is an example of a financing : which of the following is an example of a financing activity?a issuing shares of common stock.b selling goods on

If two or more operating segments have essentially the same : 1.true or false. if two or more operating segments have essentially the same business activities in essentially the

Several of the companys compensation arrangements including : after graduating near the top of his class ben naegle was hired by the local office of big 4 cpa firm in his hometown.

What is the cost of equity for a firm for which the : what is the cost of equity for a firm for which the required return on assets ra is 14 the cost of debt is 11 and a

In its most recent financial statements newhouse inc : in its most recent financial statements newhouse inc. reported 50 million of net statement of income and 810 million of

Prepare an income statement and a retained earnings : special delivery was started on may 1 with an investment of 45000 cash. following are the assets and liabilities of the

User Account

All Pages