In Implementing FASB 52

question 12

Multiple Choice

In implementing FASB 52,

• A)the functional currency of the foreign entity must be translated into the reporting currency in which the consolidated statements are reported.
• B)the local currency of a foreign entity may not always be its functional currency. If it is not, the temporal method of translation is used to remeasure the foreign entity's books into the functional currency.
• C)the current rate method is used to translate from the functional currency to the reporting currency.
• D)in some cases, a foreign entity's functional currency may be the same as the reporting currency, in which case translation is not necessary.
• E)All of the above are true

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Definitions:

Integration Supply Information

The process of combining and managing supply-related information across different stages of the supply chain for better coordination and decision-making.

Domestically

Pertaining to or occurring within one's own country or home, often used in contrast to international or foreign contexts.

Globally

Pertaining to activities, considerations, or impacts that span across the entire world, not limited to any single geographical area.

Supply Objectives

Goals set by an organization regarding the procurement, management, and delivery of materials and products in a way that supports its business strategy and customer needs.