What Would Be a Logical First Step That Should Be

question 32

Multiple Choice

What would be a logical first step that should be taken to restate foreign financial statements to conform to U.S.GAAP, assuming a four-column worksheet will be used to post debit and credit adjustments and reclassifications to arrive at U.S.GAAP statements?

• A)Convert the foreign currency amounts to U.S.dollars.
• B)Restate historical costs to current cost basis.
• C)Re-order foreign financial statements to U.S.format.
• D)Determine the amount of foreign exchange gains or losses.