61) Which of the following entries brings the dollar amount of the total liabilities and shareholders' equity of a foreign subsidiary into agreement with the dollar amount of its total assets?
A) the foreign-currency translation adjustment
B) the hedging adjustment
C) the amortization of the foreign-currency rate
D) the foreign-currency rate of return adjustment
62) The rate at which one unit of one country's currency can be converted into another country's currency is called the:
A) domestic-currency exchange rate
B) domestic-currency conversion rate
C) foreign-currency exchange rate
D) foreign-currency conversion rate
63) The purchase of investments would appear on a cash flow statement in the:
A) operating activities section
B) investing activities section
C) financing activities section
D) would not appear on a cash flow statement
64) The sale of an investment would appear on a cash flow statement as a:
A) cash inflow in the operating activities section
B) cash inflow in the investing activities section
C) cash inflow in the financing activities section
D) cash outflow in the investing activities section
65) On the cash flow statement, the purchase and sale of bonds of other companies are reported as:
A) operating activities
B) financing activities
C) investing activities
D) would not appear on a cash flow statement
66) The Gain/Loss on the sale of Available for Sale Investment is reported as other income or other expense on the income statement.
67) Investment in subsidiaries involves purchasing 25% of the organization's shares.
68) With an investment in a subsidiary, under private enterprise GAAP, the investment can be accounted for using consolidation, or the equity or cost method.
69) A purchase of 20% of JetNew stock by Zip would be accounted for using the equity method.
70) A decrease in a long term equity investment account due to a chance in market value involves a debit to the other comprehensive income/loss account.