According to the Translation Process in the United States, ________

question 57

Multiple Choice

According to the translation process in the United States, ________.

• A)companies first translate their statements into dollars, and then recast their financial statements consistent with U.S. GAAP
• B)companies recast their financial statements consistent with U.S. GAAP, and then translate them into U.S. dollars
• C)companies only need to worry about the translation process because local operations take place in a local GAAP environment
• D)companies translate foreign currency financial statements only if the dollar is weakening against the local currency

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Definitions:

Retained Earnings

A portion of company profits not paid out as dividends but reinvested in the business, used for debt payment, or saved as cash reserves.

Profits

The financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to maintain the operation.

Re-Invested

Capital or earnings that are put back into a business or investment to support growth or generate additional revenue.

Company

An entity engaged in commercial, industrial, or professional activities, either as a single individual or a group of people structured as a corporation, partnership, or sole proprietorship.