When a Foreign Entity Has the Foreign Currency as Its

question 54

Multiple Choice

When a foreign entity has the foreign currency as its functional currency,it uses which exchange rate to translate revenues and expenses in the income statement?

• A) the average exchange rate during the period
• B) the end of the period exchange rate
• C) the historical exchange rate
• D) the exchange rate on the date the asset or liability was obtained

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Definitions:

Fourteenth Amendment

An amendment to the United States Constitution, granting citizenship to former slaves and providing all citizens with "equal protection under the laws," ratified in 1868.

Supreme Court

The highest federal court in the United States, endowed with the judicial power of the government and hence functions as the ultimate authority on constitutional interpretation.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.