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:

Improper Standardization

The faulty or inconsistent application of norms, rules, or measurements in research or assessment processes.

Criterion-related Validity

The extent to which a measure is related to an outcome or criterion, indicating how well the test predicts a specific aspect of a person's behavior or performance.

Mechanical Aptitude

Mechanical aptitude refers to a person's ability to understand and apply mechanical concepts and principles, often assessed for careers involving machinery or engineering tasks.

Criterion-related Validity

The extent to which a measure is associated with an external criterion or outcome, assessing the test's predictive or concurrent accuracy.