Question #69

Reading: Reading 10 Multinational Operations

PDF File: Reading 10 Multinational Operations.pdf

Page: 40

Status: Unattempted

Part of Context Group: Q69-71 First in Group
Shared Context
- On APJ's 2012 income statement, the level of sales in U.S. dollars would be closest to: A) $1,985. B) $1,272. C) $1,377.
Question
On APJ's 2012 balance sheet, the level of accounts receivable is U.S. dollars would be closest to:
Answer Choices:
A. $110
B. $132
C. $330
Explanation
Since we are using the current rate method, all balance sheet accounts are translated at the current exchange rate, except for the common stock account, which is translated at the historical rate. A/R: (330 / 3) = 110
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