Which Method of Translating a Foreign Subsidiary's Financial Statements Is

question 52

Multiple Choice

Which method of translating a foreign subsidiary's financial statements is correct if it is assumed that the parent's net investment is exposed to foreign exchange risk?

• A) Historical rate method.
• B) Working capital method.
• C) Current rate method.
• D) Remeasurement.
• E) Temporal method.

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Definitions:

Operant Conditioning

A learning process in which the consequences of an action determine the likelihood of that action being repeated.

Negative Reinforcer

A stimulus whose removal or avoidance after a behavior increases the likelihood of that behavior being repeated.

Anxiety

A feeling of worry, nervousness, or unease, typically about an imminent event or something with an uncertain outcome.

Negative Reinforcer

A stimulus which, when avoided or removed after a certain behavior, enhances the probability of that behavior occurring again.