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:

Common Stock

A form of corporate equity ownership, a type of security representing ownership in a corporation and a claim on part of the company’s profits.

Cash Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, to its shareholders in the form of cash.

Operating Activities

Activities that relate directly to the primary business operations, including revenues and expenses, cash flows, and transactions.

Direct Method

A cash flow statement preparation approach that lists major payments and receipts of cash from operational activities directly.