Cumulative Translation Adjustment (CTA) Is

question 37

Multiple Choice

Cumulative Translation Adjustment (CTA) is

• A) a separate line on the consolidated income statement stating the FX effect on the company's earnings.
• B) a separate equity reserve account stating translation gains or losses over time.
• C) a separate margin added to the sale price once the subsidiary is liquidated.
• D) a separate account on the subsidiary cash flow statement that needs to be adjusted.

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Definitions:

Independent Variable

The independent variable is a variable in an experiment or model that is manipulated or changed to observe its effects on a dependent variable.

Distribution

Refers to how values in a data set are spread or dispersed, indicating the frequency of each value or range of values.

Pie Chart

Figure that uses a circle divided into proportions to represent the percentage of the sample corresponding to each value of a variable.

Frequency Polygon

A graphical representation of a frequency distribution with line segments connecting points directly above class midpoint values on the horizontal axis.