A company prepares its financial statements in accordance with U.S. GAAP （generally a

value by €20,000 in 2009.In 2010, prices increased and the same inventory was worth €30,000 more than its value at the end of 2009.Which of the following statements is most accurate？ In 2010, the company’s cost of sales:

A.was unaffected.

B.decreased by €20,000.

C.decreased by €30,000.

has experienced a decline in the demand for its products. The following information relates to the company’s printing equipment as of 31 December 2010.

The impairment loss (in C$) is closest to:

A. 0.

B. 60,000.

C. 70,000.

A company prepares its financial statements in accordance with U.S.GAAP (generally accepted accounting principles).It expected to be the sole supplier for a state-wide school milk program and had production facilities valued at $28.4 million.Recently several other companies were also granted milk-supply contracts throughout the state and the company now estimates that it will only be able to generate cash flows of $3 million per year for the next 7 years with its facilities.The firm has a cost of capital of 10%.

The impairment loss (in $-millions) on the production facilities will most likely be reported in the company’s financial statements as a:

A.13.8 reduction in operating cash flows..

B.13.8 impairment loss in the income statement

C.7.4 reduction in the balance sheet carrying amount.

as experienced a decline in the demand for its products.The following information relates to the company’s printing equipment as of 31 December 2010.

The impairment loss (in C$) is closest to:

A.0.

B.60,000.

C.70,000.

in the process of developing a more efficient production process for one of its primary products.The most appropriate accounting treatment for the costs incurred in the project is to:

A.expense all cost as incurred.

B.capitalize costs directly related to the development.

C.expense costs until technical feasibility has been established.

A．the currency in which the parent company prepares its financial statements．

B．any currency other than the parent currency．

C．the currency of the primary economic environment in which the firm operates．

D．the currency in the country where the foreign subsidiary is operating．

process of developing a more efficient production process for one of its primary products.The most appropriate accounting treatment for those costs incurred in the project is to:

A.expense them as incurred.

B.capitalize costs directly related to the development.

C.expense costs until technical feasibility has been established.

rranged financing for the construction of a new plant. The company:

·Borrowed NZ$5,000,000 at an interest rate of 8%.

·Issued NZ$5,000,000 of preferred shares with a cumulative dividend rate of 6%, and

·During the first year of construction of the company was able to temporarily invest NZ$2,000,000 of the loan proceeds for the first six months and earned 7% on that amount.

The amount of financing costs to be capitalized (NZS) to the cost of the plant in the first years isclosest to:

A.330,000.

B.400,000.

C.630,000.

valuation model to value land.At the end of the current year the land value of the land has increased and will be adjusted on the balance sheet.Which of the following statements is most accurate？ In the current period the revaluation of the land will:

A.increase return on sales.

B.increase return on assets.

C.decrease the debt to equity ratio.

A．the currency in which the foreign subsidiary prepares its financial statements．

B．any currency other than the parent country currency．

C．the currency of the primary economic environment in which the firm operates．

D．the currency in the country where the foreign firm is operating．