Transit Importing Company. converts its foreign subsidiary financial statements using the translation process. The company's French subsidiary reported the following for 2014: revenues and expenses of 10,500,000 and 6,505,000 francs, respectively, earned or incurred evenly throughout the year, dividends of 500,000 francs were paid during the year. The following exchange rates are available: On
January 1 . 2014 .................................... $.196 On December 31 . 2014 .................................. .205 Average rate for 2014 ................................. .210 Rate when dividends were declared and paid ............ .228 Translated net income for 2014 is
a. $910,860
b. $838,950
c. $805,860
d. $733,950
B
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On September 1, there were 50 units in beginning work in process inventory (40% complete). During the month, 650 units were completed. The ending work in process inventory was 80 units (20% complete). What are the total equivalent units for conversion costs?
a. 646 units b. 716 units c. 666 units d. 616 units
Feedback from employees to management forms the ____________________ flow of communication in most organizations
Fill in the blank(s) with correct word
The Sarbanes-Oxley Act was enacted in response to:
A) accountants' requests for definitive guidelines for their profession. B) business scandals involving companies such as Enron, WorldCom, and the Arthur Andersen accounting firm. C) the need to lighten the oversight and enforcement responsibilities of the SEC. D) the Ultramares Corporation v. Touche case.
Which of the following statements is true regarding the acquisition method of accounting for a business combination?
A. The transaction may be considered to be the uniting of the ownership interests of the companies involved. B. The transaction establishes an acquisition fair value basis for the company being acquired. C. The two companies may be about the same size, and it is difficult to determine the acquired company and the acquiring company. D. The acquired subsidiary must be smaller in size than the acquiring parent. E. The combination must involve the exchange of equity securities only.