Assets and Liabilities of a Foreign Subsidiary Are Translated into Dollars

question 60

Multiple Choice

Assets and liabilities of a foreign subsidiary are translated into dollars on a consolidated balance sheet at the:

• A)older, historical exchange rates on the date of the purchase of the subsidiary's stock.
• B)anticipated exchange rate in effect over the next 5 years.
• C)exchange rate in effect on the date of the financial statements.
• D)average exchange rate in effect over the past 5 years.

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