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Alexeev081 [22]
3 years ago
12

A company's foreign subsidiary operation maintains its financial statements in the local currency. The foreign operation's capit

al accounts would be translated to the functional currency of the reporting entity using which of the following rates?
Your Answer:

a. Historical exchange rate.
b. Functional exchange rate.
c. Weighted-average exchange rate.
d. Current exchange rate at the balance sheet date.
Business
1 answer:
eduard3 years ago
7 0

Answer: A - The historical exchange rate.

Explanation:

When translating a subsidary's capital account to the functional currency, it is translated at the historical exchange rate.

Historical exchange rate is the exchange rate that existed when the asset or liability was acquired.

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The CEO of Lexington decides to impose a transfer price since the two divisions cannot agree. She chooses the highest feasible p
Sloan [31]

Answer: Not Sound as Company does not benefit as a Whole.

Explanation:

This question alludes to the presence of Divisions in a company tasked with producing different segments of a good.

One Division makes a segment of the good and transfers it for a price to the other division so that they may be able to show Revenue on their books.

The reasoning of the CEO of Lexington is flawed because if she chooses the highest feasible Transfer Fee for the goods it will be good for the Division doing the Transferring because they make more revenue.

However, it will increase the cost of those being transferred to by the same amount that it increase the revenue of the Division transferred from.

As a result, the increase in Cost and the Increase in Revenue in the two divisions will cancel each other out meaning that the company did not benefit.

8 0
3 years ago
Some people attend college. some people have jobs. assuming these two statements are true most people that attend college have j
Nana76 [90]
The main point of attending college is to have a degree and to attain a job. Most people who already have a job doesn't want to go to college anymore because of the fact that they are already earning money. But, the statement you have given is possible and is also TRUE.
5 0
3 years ago
Rent payments that are processed through a third-party network after March 11, 2021, should be reported to the taxpayer on:
pogonyaev

After March 11, 2021, such rent payments as described above should be reported on <u>Form 1099-MISC,</u><u> Miscellaneous </u><u>Information</u><u>.</u>

The subject of rent payments made through third party networks is covered under the American Rescue Plan Act which:

  • Was signed by President Biden on March 11, 2021.
  • Clarifies the scope of Form 1011-K.

The Act shows that when rent payments are made through third-party networks, they should be treated as miscellaneous information and reported on Form 1099-MISC.

Find out more on Form 1099 at brainly.com/question/25485090.

7 0
2 years ago
The process by which a domestic company sells its already sold on its donestic exchange on a foreign stock exchange is called​
sleet_krkn [62]

Answer:

The process by which a domestic company sells its already sold on its donestic exchange on a foreign stock exchange is called

Explanation:

the answer is letter D. cross-listing

8 0
3 years ago
An economy is employing 4 units of capital, 5 units of raw materials, and 4 units of labor to produce its total output of 360 un
polet [3.4K]

Answer:

$0.20

Explanation:

Calculation to determine what The per-unit cost of production in this economy is

First step is calculate the Capital, Raw materials and Labour

Capital=4*$10

Capital=$40

Raw materials=5*$4

Raw materials=$20

Labour=4*$3

Labour=$12

Second step is calculate the Total cost

Total cost=$40+$20+$12

Total cost=$72

Now let calculate the Cost per unit using this formula

Cost per unit= Total cost/Total units produced

Let plug in the formula

Cost per unit=$72/360

Cost per unit=$0.20

Therefore The per-unit cost of production in this economy is $0.20

7 0
3 years ago
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