Assuming That the Functional Currency of a Foreign Subsidiary Is

question 78

Multiple Choice

Assuming that the functional currency of a foreign subsidiary is the local currency, which of the following accounts would be translated at the current rate?

• A)​Additional Paid-in Capital
• B)​Retained Earnings
• C)​Allowance for Doubtful Accounts
• D)​Cost of Goods Sold

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Definitions:

Centimeters

A measurement in the metric system that corresponds to one hundredth of a meter in length.

Yards

A unit of length in the Imperial and US customary systems, equal to 3 feet or 0.9144 meters.

Meters

The base unit of length in the International System of Units (SI), equivalent to 100 centimeters.

Milliliters

A unit of volume in the metric system, equal to one-thousandth of a liter.