Under US Accounting and Translation Practices, Use of the Current Rate

question 3

Multiple Choice

Under U.S. accounting and translation practices, use of the current rate method is termed ________ while use of the temporal method is termed ________.

• A) translation; the same
• B) translation; remeasurement
• C) remeasurement; the same
• D) remeasurement; translation

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Definitions:

Net Working Capital

A measure of a company's short-term financial health, calculated as current assets minus current liabilities.

Inventory

The raw materials, work-in-process products, and finished goods that are considered a part of a business's assets that are ready or will be ready for sale.

After-Tax Salvage Value

The net value of an asset after it has been disposed of and all related taxes have been paid.

Net Working Capital

The difference between a company's current assets and its current liabilities, indicating the financial health and operational efficiency.