Which of the Following Best Describes the Accounting for a Foreign

question 22

Multiple Choice

Which of the following best describes the accounting for a foreign entity requiring translation or remeasurement if the local economy is classified as highly inflationary?

• A)The entity's financial statements are first adjusted for inflation and then translated into the domestic currency.
• B)The entity's financial statements are first adjusted for inflation and then remeasured into the domestic currency.
• C)The unadjusted trial balance is translated if the functional currency is the local currency.
• D)The unadjusted trial balance is remeasured regardless of the functional currency.

---

Definitions:

Collagen α-Chains

The triple helical strands that make up collagen, the main structural protein in various connective tissues.

Collagen

The primary structural protein found in skin and other connective tissues, widely known for providing strength and elasticity.

Elastic

A property of materials that allows them to resume their normal shape after being stretched or compressed.

Adipocyte

Fat cell.