12) What is the amount of total assets?

A. $1,244,500.

B. $1,380,000.

C. $1,472,000.

D. $1,762,000.

13) Cassowary Corporation's balance sheet at December 31, 2003 included a $20,400 account

receivable from Quail Corporation of Australia. The account receivable was denominated as

30,000 Australian dollars (A$). What entry did Cassowary make on January 16, 20X3 when

the account receivable was collected and the exchange rate for A$ was $.67?

A. Cash 20,100

Accounts Receivable 20,100

B. Cash 20,100

Exchange Loss 300

Accounts Receivable 20,400

C. Cash 20,400

Accounts Receivable 20,400

D. Cash 20,700

Accounts Receivable 20,400

Exchange Gain 300

14) When the financial statements of a foreign subsidiary one year after acquisition are

consolidated with the parent company, Retained Earnings is

A. translated at the current exchange rate.

B. remeasured at the current exchange rate.

C. remeasured at the historical exchange rate.

D. None of the above answers is correct.

15) A foreign subsidiary's accounts receivable balance should be translated for the consolidated

financial statements at

A. the appropriate historical rate.

B. the prior year's forecast rate.

C. the future rate for the next year.

D. the spot rate at year-end.