In Implementing FASB 52

question 55

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.

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Definitions:

Atomic Components

The basic, indivisible parts or elements of a system.

Atomic Statements

The simplest type of statements that cannot be broken down any further into other statements, often considered the building blocks of logic.

Connectives

In logic and linguistics, connectives are words or phrases that connect sentences or phrases, such as "and", "or", "if...then", indicating the relationship between them.

Main Connective

In logic, the operator that determines the overall value of a compound statement, such as "and", "or", or "if... then".