Which Method Is Used for Remeasuring a Foreign Subsidiary's Financial

question 36

Multiple Choice

Which method is used for remeasuring a foreign subsidiary's financial statements?

• A) Historical rate method.
• B) Working capital method.
• C) Current rate method.
• D) Translation.
• E) Temporal method.

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Definitions:

Forward Contract

A contractual agreement to buy or sell a particular commodity or financial instrument at a pre-determined price at a future date.

Spot Rates

The existing market value at which one can buy or sell a currency for instant delivery.

Selling Price

The set amount of money for which a product or service is sold to customers.

Spot Rates

The present cost at which a specific asset is available for purchase or sale with immediate delivery.