Question 1 In translating foreign financial statements (local currency is functional currency) into U.S. dollars, FASB Statement No. 133 requires the use of the: O current-noncurrent method O current rate method monetary-nonmonetary method O temporal method.Question 10 1 pts If a parent company has an autonomous subsidiary in a country where the cumulative rate of inflation for the past three years is more than 100 percent, which translation methodology would they use according to the IASC? O the current rate method. O the current rate method after adjusting for inflation. O the temporal method. O the temporal method after adjusting for inflation.Question 2 1 pts On April 8, 20X2 Day Corp. purchased merchandise from an unaffiliated foreign company for 10,000 units of the foreign company's local currency. Day paid the bill in full on March 1, 20X3 when the spot rate was $.45. The spot rate was $.60 on April 8, 20X2 and was $.55 on December 31, 20X2. For the year ended December 31, 20X3, Day should report a transaction gain of: O $1,150 O $1,000 O $500 O SOQuestion 3 Which one of the following items from the financial statements of a foreign subsidiary (local currency is functional currency) would be translated into dollars using the historical exchange rate? O accounts payable O amortization of bond premium O common stock O inventories priced at the lower of cost or marketQuestion 4 An exchange gain from remeasurement of a foreign entity's financial statements, using Temporal method, should be: O deferred and amortized over a period not to exceed 40 years O deferred until a subsequent year when a loss occurs that can offset against it O included in net income in the period it occurs O included as a separate item in the equity section of the balance sheetQuestion 5 A gain resulting from translating foreign currency financial statements (local currency is functional currency) into U.S. dollars should be reported as: O a deferred item in the balance sheet O an extraordinary item in the income statement for the period in which the rates change an ordinary item in the income statement O a stockholders' equity adjustment from translationQuestion 6 1 pts A company is translating account balances from another currency into dollars for its December 31, 20X5 statement of financial position and its calendar year 20X5 earnings statement and statement of cash flows. The average exchange rate for the year 20X5 should be used to translate: O cash at December 31, 20X5 O land purchased in 20X3 O retained earnings in January 1, 20X5 O sales for 20X5Question 8 When translating foreign currency financial statements (functional currency is local currency), which of the following accounts would be translated using current exchange rates? O Property, plant & equipment Inventories carried at cost Yes Yes O Property, plant & equipment Inventories carried at cost No No O Property, plant & equipment Inventories carried at cost Yes No O Property, plant & equipment Inventories carried at cost No YesQuestion 9 When remeasuring foreign currency financial statements (functional currency is parent currency), which of the following accounts would be translated using current exchange rates? O Property, plant & equipment Inventories carried at market Yes Yes O Property, plant & equipment Inventories carried at market No No O Property, plant & equipment Inventories carried at market Yes No O Property, plant & equipment Inventories carried at market No Yes