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:

Atrophy

Wasting away of a muscle.

Contract

A legally binding agreement between two or more parties that defines and governs the rights and duties of those parties.

Flex

To bend a limb or muscle or the ability of muscles to contract and cause movement.

Torticollis

A condition also known as "wry neck," characterized by a twisted or tilted neck due to shortened or spasmodic neck muscles.