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alukav5142 [94]
3 years ago
7

The marketable securities were acquired for 1,000,000 pesos when the exchange rate was $1=20 pesos. Consolidated statements are

to be produced, and the current exchange rate is $1=25 pesos. Which of the following statements is true for the consolidated financial statements?Group of answer choicesA positive translation adjustment must be reported.No gain or loss will be reported.A remeasurement gain must be reported.A remeasurement loss must be reported.A negative translation adjustment must be reported.
Business
1 answer:
kiruha [24]3 years ago
3 0

Answer:

A negative translation adjustment must be reported.

Explanation:

Under the current rate method, the company must report a negative translation adjustment on a reserve account in the consolidated balance. This reserve account is included in the consolidated balance sheet as unrealized gains/losses.

The marketable securities were purchased at 1,000,000 / 20 = $50,000 (US dollars). But now they are worth only 1,000,000 / 25 = $40,000 (US dollars).

The reserve account of the consolidated financial statements should show a negative foreign currency translation adjustment equal to $10,000 (US dollars).

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4 years ago
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Answer:

$47,000

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5 0
3 years ago
The activities needed to operate a business can be divided into a number of
stellarik [79]

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<h3>What are business activities?</h3>

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The major three types of activities are operating, investing, and financing activities. Operating activities support the entity's primary purpose. Financing deals with collecting funds for financial strength and growth. Investing activities are when a business invests in long-term assets.

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8 0
2 years ago
Jim wants to start investing in bonds. He checks with two brokers to ask them for suggestions of bonds to buy. Broker J, who cha
svetoff [14.1K]

Answer: C

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7 0
4 years ago
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Answer:

Option D is correct

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The company is liable for proper communication of cautions, defective designs and production processes that she uses to manufacture the product but it is not liable for the the consumer unforeseeable misuse of a fan. Because it is not associated with the duty of care. I also have a duty of care to myself like you have to yourself. If I have struck myself with a hammer then it unjustifiable to sue the company. I am misusing that hammer. I don't have the license but still I am driving car, it means I am misusing the asset. This means some operations are restricted by law and some are implicitly restricted.

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3 years ago
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