Bowen Corporation owns 70 percent of Roan Corporation’s voting common stock.

On March 12,
20X2, Roan sold land it had purchased for $140,000 to Bowen for $185,000. Bowen plans to
build a new warehouse on the property in 20X3.

A.) Downstream
B.) Upstream
C.) NONE OF THE ABOVE

Bowen Corporation owns 70 percent of Roan Corporation’s voting common stock. Bowen had
initially purchased the land for $150,000 and sold it to Roan on March 12, 20X2, for $180,000.

A.)Downstream
B.)Upstream
C.)NONE OF THE ABOVE

Does professor Tam always say “you should be proud of yourself” before we being a test?

A.) YESSS!!!
B.) Of Course not
C.) NONE OF THE ABOVE

When the future period shrinks to zero day, the forward rate = spot rate.

A.) TRUE
B.) FALSE
C.) NONE OF THE ABOVE

Which of the following is considered non-monetary ?

A.) Sales
B.) Marketable Securities
C.) Equipment
D.) Rent

When you’re translating an asset/liability, what rate do you use ?

A.) Current rate

B.) Average rate
C.) Historical rate

When the local currency is the functional currency, what do you need to do ?

A.) Remeasure
B.) Translate
 C.) NONE OF THE ABOVE

Which account would you debit to record a forward contract ?

A.) Dollar receivable from exchange broker

B.) None of the above
C.) Foreign currency payable to exchange broker