Consider two different foreign subsidiaries of Georgia-Pacific Wood Products Inc. The first subsidiary mills trees in Canada and ships its entire product to the Georgia-Pacific U.S. The second subsidiary is also owned by the parent firm but is located in Japan and retails tropical hardwood furniture that it buys from many different sources. The first subsidiary is likely a/an………foreign entity with most of its cash flows in U.S. dollars, and the second subsidiary is more of a/an ……..foreign entity.

A. True

B. False

A. self - sustaining foreign

B. integrated foreign entity

C. foreign

D. none of the above

A. local

B. integrated

C. notational dollar

D. functional

A. changes in the value of outstanding financial obligations incurred prior to a change in exchange rates.

B. the potential for an increase or decrease in the parent company's net worth and reported net income caused by a change in exchange rates since the last consolidation of international operations.

C. an unexpected change in exchange rates impact on short run expected cash flows.

D. none of the above.

A. monetary; current rate

B. temporal; current rate

C. temporal; monetary

D. current rate; temporal

A. to prepare consolidated financial statements.

B. to help management assess the performance of foreign subsidiaries.

C. to act as an interpreter for managers without foreign language skills.

D. none of the above.

A. current rate; temporal

B. temporal; proper timing

C. current rate; future rate

D. none of the above