What is a company's functional currency?
A. The reporting currency of its parent for a subsidiary.
B. The currency of the primary economic environment in which it operates.
C. The currency in which it prepares its financial statements.
D. The currency of the country where it has its headquarters.
E. The currency it chooses to designate as such.
Answer: B
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Regarding actuarial assumptions, firms must disclose in notes to the financial statements all of the following except:
a. the discount rate used to compute the pension benefit obligation. b. the expected rate of return on pension investments. c. estimates of the number of retirees over the future 10 years. d. the rate of compensation increase.
When the cost-adjusted-to-market method is used to account for a long-term investment in stock of another company, the carrying value of the investment is directly affected by
a. the dividend distributions of the investee. b. the earnings and dividend distributions of the investee. c. the earnings of the investee. d. neither the earnings nor the dividends of the investee.
Some evaluation items like attitude, initiative, and promotability are difficult to measure _______.
A. objectively B. honestly C. decisively D. independently E. none of the above
A principal's duty to reimburse an agent for losses the agent suffers while acting on behalf of the principal is known as the duty of ________
A) accounting B) cooperation C) indemnification D) compensation