Under US GAAP, What Method of Translating Foreign Currency Financial Statements

question 24

Multiple Choice

Under U.S. GAAP, what method of translating foreign currency financial statements must be used for subsidiaries in highly inflationary economies?

• A) Current rate method
• B) Current/non-current method
• C) Temporal method
• D) Monetary/non-monetary method

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Definitions:

Personal Taxes

Taxes levied on the income or property of individuals.

Personal Income

The total earnings of an individual from all sources before taxes, including wages, dividends, interest, and rents.

Federal Government

the national government of a federal state, which shares power with regional or state governments under a system of federalism.

Individual Income

The total amount of money earned by a person from all sources before taxes.