foreign subsidiary's functional currency is its local currency, which has not experienced significant inflation. The weighted average exchange rate for the current year would be the appropriate exchange rate for translating Sales to customers Wages expense (Points : 2) No No Yes Yes Yes No No Yes Question 12.12. Mr. Rich gives $100,000 to United Charity on Monday, with the stipulation the money will be given to the National Association for Dolphin Protection (NADP). However, prior to the actual conveyance, Mr. Rich has the right to divert the gift to a different beneficiary. If the financial statements are produced on Tuesday and United Charity is still holding the money, how much contribution revenue should United Charity recognize, and how much contribution revenue should NADP recognize at that time? United Charity NADP (Points : 2) $0 $100,000 $100,000 $0 $0 $0 $100,000 $100,000 Question 13.13. What describes the conceptual framework for FASB to create a system of consistent financial reporting objectives and concepts? (Points : 2) The Statement of Financial Accounting Concepts (SFAC). Securities and Exchange Commission (SEC). Generally Accepted Accounting Principles (GAAP). This framework has not yet been developed. Question 14.14. For a marketable equity securities portfolio included in noncurrent assets, which of the following amounts should be included in the period's net income? I. Unrealized temporary losses during the period. II. Realized gains during the period. III. Changes in the valuation allowance during the period. (Points : 2) I, II, and III. I and II. III only. II only. Question 15.15. The percentage-of-completion method of accounting for long-term construction-type contracts is preferable when (Points : 2) The collectibility of progress billings from the customer is reasonably assured. The contracts are of a relatively short duration. Estimates of costs to complete and extent of progress toward completion are reasonably dependable. A contractor is involved in numerous projects. Question 16.16. On June 30, Year 1, Kip Company had an unadjusted credit balance of $10,000 in its allowance for uncollectible accounts. An analysis of Kips trade accounts receivable at that date revealed the following: Age Amount