Belmonte Corporation, with a Division Located in Germany, Must Translate

question 7

Multiple Choice

Belmonte Corporation, with a division located in Germany, must translate its financial statements from euros to U.S. dollars. What is the major accounting issue involved in translation?

• A) Most accountants are not conversant in foreign currency exchange.
• B) U.S. GAAP may differ from German GAAP.
• C) The U.S. dollar has been steadily falling relative to the euro.
• D) The resulting balance sheet may not balance.

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Definitions:

LTE

LTE, or Long-Term Evolution, represents a standard for wireless broadband communication for mobile devices and data terminals, aimed at increasing speed and capacity.

Wi-Fi

A technology that allows devices to connect to the internet wirelessly using radio waves within a short range.

Phoneline

A communication technology that employs a wire or optical fiber telephone line for voice or data transmission traditionally associated with landline phones.

Ethernet

A family of computer networking technologies commonly used in local area networks (LAN), metropolitan area networks (MAN) and wide area networks (WAN).