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NEW QUESTION: 1
A __________ is a health insurance plan where medical treatment is fully covered if provided by doctor or a hospital belonging to PPO'S network of health care providers.
A. Permanently preferred organization
B. Health insurance organization
C. Health insurance from health maintenance organizations
D. Preferred provider organization
Answer: D
NEW QUESTION: 2
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
Will fixed asset turnover (calculated using end-of-period balance sheet figures) likely be lower when calculated using the all-current method or remeasured using the temporal method?
A. Lower under the all-current method.
B. The same under either method.
C. Lower under the temporal method.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
With the Rho appreciating, fixed asset turnover will be lower under the all-current method. (Study Session
6, LOS 23.d,e)
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