F2 - Foreign Currency Accounting, and Other Financial Statement Presentations

Question 1

The foreign subsidiary’s functional currency is

Answer 1

The currency of the environment in which the subsidiary primarily generates and expends cash.

Question 2

On a personal statement of financial condition, estimated income taxes equals:

Answer 2

The difference between fair values and tax bases of assets and liabilities.

Question 3

On personal financial statements, all items are reported at:

Answer 3

Their fair market values (estimated current values)

Question 4

Personal financial statements usually include:

Answer 4

A statement of financial condition (similar to a balance sheet) and a statement of changes in net worth (similar to an income statement).