accounting

ANSWER KEY TRUE OR FALSE QUESTIONS 1 2 3 4 5 6 7 8 9 10 MULTIPLE CHOICE QUESTIONS 6 11 16 21 26 12 16 22 27 13 18 23 9 28 14 19 24 29 10 15 20 25 30 SHORT ANSWER QUESTIONS 1. What types of investments in common stock normally are accounted for using (a) the equity method and (b) the cost method?- 2. How is the ability to significantly influence the operating and financial policies of a company normally demonstrated? 3. How is the receipt of a dividend recorded under the equity method? Under the cost method? 4. Explain the difference between indirect and direct exchange rates.- 5. How are assets and liabilities denominated in a foreign currency measured on the transaction date? On the balance sheet date? 6. Define the following terms: a) local currency unit, b) functional currency- c) Branch accounting