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Question 6
Gains from remeasuring a foreign subsidiary's financial statements from
the local currency, which is not the functional currency, into the parent
company's currency should be reported as a(an)
Question 7
The following information pertains to Flint Co.'s sale of 10,000 foreign
currency units under a forward contract dated November 1, 2004, for
delivery on January 31, 2005: Flint entered into the forward contract in
order to speculate in the foreign currency. In Flint's income statement for
the year ended December 31, 2004, what amount of loss should be
reported from this forward contract?
Question 8
In 2003, a personal injury lawsuit was brought against Halsey Co. Based
on counsel's estimate, Halsey reported a $50,000 liability in its
December 31, 2003, balance sheet. In November 2004, Halsey received
a favorable judgment, requiring the plaintiff to reimburse Halsey for
expenses of $30,000. The plaintiff has appealed the decision, and
Halsey's counsel is unable to predict the outcome of the appeal. In its
December 31, 2004, balance sheet, Halsey should report what amounts
of asset and liability related to these legal actions?
Question 9
Which of the following is not a contingent liability under international
accounting standards?
Question 10
Based on preliminary discussions with a foreign customer, Alcoco, a
U.S. entity, budgeted a significant sale to the foreign entity denominated