_____ Refers to a Method of Foreign Currency Translation in Which

question 20

Multiple Choice

_____ refers to a method of foreign currency translation in which items in the subsidiaries' financial statements are translated at the current exchange rate into the currency of the parent corporation.

• A)Hedging process
• B)Current-rate method
• C)Monte Carlo method
• D)Temporal method
• E)Markov process

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Definitions:

Note Receivable

A written promise that someone will pay a business a specific sum of money on a specified date or on demand.

Days' Sales in Receivables

A financial ratio that measures the average number of days that receivables remain outstanding before being collected.

Allowance for Doubtful Accounts

Allowance for doubtful accounts is a financial accounting provision made for receivables that may not be collectible, estimating the portion of outstanding receivables likely to be uncollectable.

Credit Balance

A situation where the amount of credits in an account exceeds the debits, often seen as a positive balance in financial and bank accounts.