Question

14. Which statement is correct? a. AOCI is closed out against Retained Earnings. b. OCI is closed out against Retained Earnings. c. OCI is closed out against AOCI d. AOCI is closed out against OCI 15. Which of the following statements is correct? a. AOCI is recorded on the parent's separate books b. AOCI is reported on the Consolidated Financial Statements e. Both a and b are correct d. Neither a norb is correct 16. Home Depot makes reference to its Foreign Currency Translation process in the Notes to Consolidated Financial Statements. Which of the following choices is nor part of Home Depot's translation process in its footnotes? a. Assets and liabilities are translated into dollars at the current rate of exchange on the last day of the reporting period. b. Contra asset accounts are translated using the average exchange rates for the period. c. Revenues and expenses are translated using average exchange rates for the period. d. Equity transactions are translated using the actual rate on the day of the transaction. 17. Home Depot makes reference to its Foreign Currency Translation adjustments in the Notes to Consolidated Financial Statements. Which of these two choices is the correct reference? 2. Comprehensive income includes net earnings ... and (those) that are excluded from net earnings under GAAP, which consists primarily of foreign currency translation adjustments. b. Comprehensive income includes net earnings ... and those) that are included in net earnings under GAAP, which consists primarily of foreign currency translation adjustments.

Answer 1

False – balance s it is equity ese - it is recorded in alance shooo under shareholders el Scheme and is a general ledger accorine- scheme a True - AOCI iu reported on consoledared Kenancial scalements and are reported in the equity section q BIS False false ( a 16 @ These are past of cether ther comprehenswe income since they have not actually occured and wel increasel Decrease shareholdery egenty (6 These are not past since these are conta entres and will gwe me effect These well not Form part of footnotes if realised but well effect acono scatenare well boom past a note and comprchensue come

out against Retained 10 AOCI is closed Earnings Doch is closed 3. OCT s closed & AOCI is closed out against Releurod Barnens ant aquenst AOCI cut against och 7 AOCI is closed out againt Reland Earnings - This statement is true as Accumulated the comprehenswe income is a seperate line wilhen the Shootholdess egluty sections Balances they affect the Bls and statement a comprehensul income but not reland earnings yes true since these items do not effect selaned earnings eg unselezedgunst! losses on derivative financial construnon's False oci is not closed and acant AOCI sunce AOCI is nothing beet Accumulated other comprehenswe oncome False AOCI is not closed out against oci sunce AOCI is nothing but accumulated och

n. stalemene (6) is correct sence compachonsur income inclue net eanings and expealized encome due to feriengn currency Hansalaron adjustments