Which of the Following Statements Is True of Non-Local Currency

question 23

Multiple Choice

Which of the following statements is true of non-local currency balances in the foreign currency financial statements of foreign operations?

• A) These are not reported in the consolidated financial statements.
• B) Any gain is shown in the balance sheet of the company as an asset.
• C) Any loss is reflected in the measurement of consolidated net income.
• D) No gain or loss is reported in the financial statements.

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Definitions:

Restrictions

Restrictions are limitations or conditions placed on something, such as legal agreements, to control or direct its use or activities.

Eminent Domain

The right of a government or its agent to expropriate private property for public use, with compensation.

Inherent Power

The authority possessed by a sovereign state or government without needing to be granted by a law, deriving from the very nature of the government's existence.

Government

The organization, or group of people governing an organized community, often a state, and responsible for the creation and enforcement of laws.