When the Local Currency of the Foreign Subsidiary Is the Functional

question 50

Multiple Choice

When the local currency of the foreign subsidiary is the functional currency,a foreign subsidiary's income statement accounts would be converted to U.S.dollars by:

• A) translation using historical exchange rates.
• B) remeasurement using current exchange rates at the time of statement preparation.
• C) translation using average exchange rate for the period.
• D) remeasurement using the current exchange rate at the time of statement preparation.

---

Definitions:

Enlightenment

A cultural and intellectual movement in Europe during the 17th and 18th centuries that emphasized reason, individualism, and skepticism of traditional doctrines.

Colonial America

Refers to the period in North American history from the 17th to the 18th century when European countries established colonies on the continent, leading to diverse cultural exchanges and conflicts.

Ideas

Mental constructs or notions conceived by the human mind as representations of concepts, objects, or phenomena.

Colonial Governors

Officials appointed to govern a colony, representing the interests of the colonial power and administering its laws and policies.