Question

a. Abercrombie Co., a U.S. firm, formed a German company in 2018 by purchasing the common stock of the newly formed Dolce Inc. The functional currency of Dolce is the euro. During their first three years, dolce experienced the following activity in retained earnings:

2018                                            Net loss                            1,000,000 euros

2019                                            Net income                       2,000,000 euros

January 1, 2020                           Dividend                            500,000 euros

2020                                             Net income                        750,000 euros

The following exchange rates could be relevant:

Date                                                       1 euro equal to

December 31, 2017                       $0.20

December 31, 2018                     $0.22

Average 2018                                $0.215

January 1, 2020                             $0.245

Average 2019                                $0.24

December 31, 2020                       $0.26

Average 2020                                $0.25

Required: What is the translated December 31, 2020, balance of the retained earnings for dolce?

1. Define the following:

1. Uncertainty Avoidance.

2. Professionalism.

3. Inductive Approach.

4. Financial reporting.

5. Exchange Rate.

Answer 1

Professionalism; the set of code of Conduct, behaviour perform their professional duties. Can and manners that oe fines a profession and specialised knowledge and skills to las Kramples of professional behaviour inclueles ! Demonstrating respect for others .

Inductive Approach dress inductive approach deals with a development of a theory which moves from more specific to bo'it passes through observation, pattern formation and development of theory. Isenerel Information

Enamples Observation i Elephants depends on water to exist Pattern formation all Observer animals depend on water to enist Develop a theory All biological life depends on water to enist

periodic disclosure of financial information financial reporting is the of a company to its management stakeholders Leg: Investors, customers ete) enist to Financial Reporting and- For eg! Report the wet income of a company through the statement of profit & hers

An exchange rate is the - Enchange Rate value of one nation's currency currency of another nation For example: How many it take to buy one Euro. versus the economic zone u.s dollars does 09

An exchange rate is the - Enchange Rate value of one nation's currency currency of another nation For example: How many it take to buy one Euro. versus the economic zone u.s dollars does 09