ADVANCED FINANCIAL ACCOUNTING IN
CANADA 1E NATHALIE JOHNSTONE
KRISTIE DEWALD CHERYL WILSON
SOLUTION MANUAL WITH TEST BANK
LATEST FINAL STUDY GUIDE 2026 SOLVED
QUESTIONS FULLY CORRECT
⫸ When translating a subsidiary's accounts to the parent's reporting
currency, which of the following transactions or adjustments affect its
exposure to translation gains and losses? Answer: Recording
amortization expense on intangible assets
⫸ When remeasuring a subsidiary's accounts to its functional currency,
which of the following transactions or adjustments affect its exposure to
remeasurement gains and losses? Answer: Equipment purchases
⫸ A US parent owns a subsidiary in the UK. The subsidiary purchases
equity securities for cash. How does this transaction affect the
subsidiary's exposure to remeasurement or translation gains or losses?
Answer: Neither remeasurement nor translation exposure changes
⫸ In the consolidated financial statements, remeasurement gains and
losses for an international subsidiary are reported Answer: In
consolidated income
, ⫸ In the consolidated financial statements, translation gains and losses
for an international subsidiary are reported Answer: In consolidated
other comprehensive income
⫸ A US parent has a wholly-owned subsidiary in Switzerland. The
subsidiary's accounts are reported in Swiss francs. Under what
circumstances will the US parent translate the subsidiary's accounts from
Swiss francs to US dollars? Answer: The subsidiary's functional
currency is the Swiss franc
⫸ A US company has several international subsidiaries, which it
converts to US dollars by remeasuring the subsidiaries' local currency
accounts directly into US dollars. Which statement is true concerning
these subsidiaries? Answer: Their functional currency is the US dollar
⫸ You are a US parent and you have a subsidiary in Italy. The
subsidiary's functional currency is the euro and it maintains its accounts
in euros. When you consolidate the subsidiary, you will Answer:
Translate the subsidiary's trial balance into US dollars then do the
consolidation eliminating entries
⫸ You are a US parent and you have a subsidiary in Italy. The
subsidiary's functional currency is the US dollar and it maintains its
accounts in euros. When you consolidate the subsidiary, you will
Answer: Remeasure the subsidiary's trial balance into US dollars and
then do the consolidation eliminating entries
CANADA 1E NATHALIE JOHNSTONE
KRISTIE DEWALD CHERYL WILSON
SOLUTION MANUAL WITH TEST BANK
LATEST FINAL STUDY GUIDE 2026 SOLVED
QUESTIONS FULLY CORRECT
⫸ When translating a subsidiary's accounts to the parent's reporting
currency, which of the following transactions or adjustments affect its
exposure to translation gains and losses? Answer: Recording
amortization expense on intangible assets
⫸ When remeasuring a subsidiary's accounts to its functional currency,
which of the following transactions or adjustments affect its exposure to
remeasurement gains and losses? Answer: Equipment purchases
⫸ A US parent owns a subsidiary in the UK. The subsidiary purchases
equity securities for cash. How does this transaction affect the
subsidiary's exposure to remeasurement or translation gains or losses?
Answer: Neither remeasurement nor translation exposure changes
⫸ In the consolidated financial statements, remeasurement gains and
losses for an international subsidiary are reported Answer: In
consolidated income
, ⫸ In the consolidated financial statements, translation gains and losses
for an international subsidiary are reported Answer: In consolidated
other comprehensive income
⫸ A US parent has a wholly-owned subsidiary in Switzerland. The
subsidiary's accounts are reported in Swiss francs. Under what
circumstances will the US parent translate the subsidiary's accounts from
Swiss francs to US dollars? Answer: The subsidiary's functional
currency is the Swiss franc
⫸ A US company has several international subsidiaries, which it
converts to US dollars by remeasuring the subsidiaries' local currency
accounts directly into US dollars. Which statement is true concerning
these subsidiaries? Answer: Their functional currency is the US dollar
⫸ You are a US parent and you have a subsidiary in Italy. The
subsidiary's functional currency is the euro and it maintains its accounts
in euros. When you consolidate the subsidiary, you will Answer:
Translate the subsidiary's trial balance into US dollars then do the
consolidation eliminating entries
⫸ You are a US parent and you have a subsidiary in Italy. The
subsidiary's functional currency is the US dollar and it maintains its
accounts in euros. When you consolidate the subsidiary, you will
Answer: Remeasure the subsidiary's trial balance into US dollars and
then do the consolidation eliminating entries
