Under the Current/noncurrent Method

question 25

Multiple Choice

Under the current/noncurrent method

• A)a foreign subsidiary with current assets in excess of current liabilities will cause a translation gain (loss)if the local currency appreciates (depreciates).
• B)a foreign subsidiary with current assets in excess of current liabilities will cause a translation loss (gain)if the local currency appreciates (depreciates).
• C)a foreign subsidiary with current assets in excess of current liabilities will cause a translation gain (loss)if the local currency depreciates (appreciates).
• D)a foreign subsidiary with current assets in excess of current liabilities will cause a translation loss (gain)if the local currency appreciates (depreciates),and a foreign subsidiary with current assets in excess of current liabilities will cause a translation gain (loss)if the local currency depreciates (appreciates).