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NEW QUESTION: 1
Jenna Stuart is a financial analyst for Deuce Hardware Company, a U.S. company that reports its results in
U.S. dollars. Wayward Distributing, Inc., is a foreign subsidiary of Deuce Hardware, which began operations on January 1,2007. Wayward is located in a foreign country and reports its results in the local currency called the Rho. Selected balance sheet information for Wayward is shown in the following table.
Stuart has been asked to analyze how the reported financial results of Wayward will be affected by the choice of the all-current or temporal methods of accounting for foreign operations. She has gathered the following exchange rate information on the $/Rho exchange rate:
* Spot rate on 1/01/08: $0.35 per Rho
* Spot rate on 12/31/08: $0.45 per Rho
* Average spot rate during 2008: $0.42 per Rho
Suppose for this question only that Stuart has determined that (1) the operating, financing, and investing decisions related to Wayward's operations are typically made by Wayward's local management located in the foreign country; and (2) some of Wayward's accounts receivable are denominated in a different foreign currency called the Del (DI). Which method is the best to use to translate the Del receivables into Rho, according to U.S. GAAP?
A. The method will depend on inflation.
B. The all-current method.
C. The temporal method.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
In this example, the Del is the local currency, the Rho is the functional currency (because Wayward is an independent subsidiary), and the U.S. dollar is the reporting currency. The appropriate application of U.S.
GAAP is to first remeasure the Del receivables from Del to Rho using the temporal method. (Study Session
6, LOS 23.c)
NEW QUESTION: 2
.What is an effective control for granting temporary access to vendors and external support personnel? Choose the BEST answer.
A. Creating permanent guest accounts for temporary use
B. Creating a single shared vendor administrator account on the basis of least-privileged access
C. Creating user accounts that automatically expire by a predetermined date
D. Creating user accounts that restrict logon access to certain hours of the day
Answer: C
Explanation:
Creating user accounts that automatically expire by a predetermined date is an effective control for granting temporary access to vendors and external support personnel.
NEW QUESTION: 3
In order to deliver an enhanced customer experience that is differentiated and engaging, DevOps can help a business do which critical task?
A. increase the security of the customer experience
B. obtain and respond to customer feedback
C. accelerate key feature innovation
D. optimize the performance of the client interface
Answer: B
Explanation:
DevOps emphasizes feedback allowing the business to understand and respond to the needs of all customers, both internal and external. Shortening and amplifying feedback processes allows for corrections to be continually made, thus increasing quality.
NEW QUESTION: 4
Which of the following types of volumes supported by dynamic disk uses a minimum of three disks for creating a fault-tolerant drive among the drives?
A. Striped volume
B. Spanned volume
C. Mirrored volume
D. RAID-5 volume
Answer: D
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