Which of the Following Statements Is Correct

question 23

Multiple Choice

Which of the following statements is correct?

• A) If the functional currency of the foreign operation is different than the parent's functional currency, the contributed capital must be translated using closing rates.
• B) If the functional currency of the foreign operation is different than the parent's functional currency, the contributed capital must be translated using average rates.
• C) If the functional currency of the foreign operation is different than the parent's functional currency, the contributed capital must be translated using historical rates.
• D) If the functional currency of the foreign operation is the same as the parent's functional currency, the contributed capital must be translated using average rates.

---

Definitions:

True Wood

The hard, fibrous tissue found in the stems and roots of trees and other woody plants, made up primarily of cellulose, lignin, and hemicellulose.

Vascular Tissue

The plant tissue responsible for the transport of water and nutrients; it includes the xylem and phloem.

Seed Plants

Plants that reproduce and disseminate through seeds, as opposed to spores, including angiosperms and gymnosperms.

Cuticle

A protective, often waxy or tough outer layer of many organisms, such as plants and insects, serving as a barrier against environmental damage.