If the Assets of a Foreign Operation Exceed Its Liabilities,and

question 20

Multiple Choice

If the assets of a foreign operation exceed its liabilities,and the value of the functional currency (for example the Euro) falls relative to the currency of the foreign operations,there will be:

• A)a credit to the 'foreign currency translation reserve' in the consolidated financial statements.
• B)a debit to the 'foreign currency translation reserve' in the consolidated financial statements.
• C)a credit to 'foreign currency translation revenue' in the consolidated financial statements.
• D)a debit to the 'foreign currency translation expense' in the consolidated financial statements.

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Definitions:

Large Intestine

The terminal part of the gastrointestinal tract, responsible for water absorption, and formation and excretion of feces.

Digestive System

The complex series of organs and glands responsible for the ingestion, digestion, and absorption of food and elimination of waste.

Trypsin

An enzyme produced in the pancreas that helps digest proteins in the small intestine.

Chymotrypsin

An enzyme located in the small intestine that digests proteins into smaller peptide fragments.