Which of the Following Statements Is Correct

question 2

Multiple Choice

Which of the following statements is correct?

• A) If an organization is self-sustaining, monetary items must be translated using closing rates.
• B) If an organization is self-sustaining, monetary items must be translated using average rates.
• C) If an organization is self-sustaining, shareholders' equity must be translated using closing rates.
• D) If an organization is considered an integrated foreign subsidiary non-monetary items recorded at cost must be translated using average rates.

---

Definitions:

Personnel Expenses

Costs associated with employing staff, including salaries, benefits, training, and taxes.

Client-Visits

Client visits are meetings or engagements conducted by business representatives at their clients' locations to discuss services, products, or maintain relationships.

Planning Budget

A financial plan that forecasts revenues, expenses, and resources over a specific period, aiding in strategic decision-making.

Net Operating Income

Income from operations after all operating expenses have been deducted, but before interest and taxes.