Which of the Following Is Not Correct Regarding the Translation

question 17

Multiple Choice

Which of the following is not correct regarding the translation of a foreign entity's accounts?

• A) Translation uses the historical rate at the date a foreign subsidiary was acquired for the paid-in capital amounts.
• B) Translation uses the current rate method.
• C) Translation should be used in a translating the accounts of a foreign entity operating in a highly inflationary economy.
• D) Foreign currency translation adjustments are displayed under the accumulated comprehensive income section of the translated balance sheet.

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Definitions:

Weight on the Future

This key-term may refer to the emphasis or consideration given to future outcomes or consequences in decision-making processes.

Canalization

A concept in genetics and developmental biology referring to the ability of an organism to produce the same phenotype regardless of variability in its environment or genotype.

Myelination

The coating of axons with myelin.

Differentiation

The processes by which behaviors and physical structures become specialized.