A Foreign Entity Is a Subsidiary of a U

question 5

Multiple Choice

A foreign entity is a subsidiary of a U.S.parent company and has always used the current rate method to translate its foreign financial statements on behalf of its parent company.Which one of the following statements is false?

• A)The U.S.dollar is the functional currency of this company.
• B)Changes in exchange rates between the subsidiary's country and the parent's country are not expected to affect the foreign entity's cash flows.
• C)Translation adjustments are shown in stockholders' equity as increases or decreases in other comprehensive income.
• D)Translation adjustments are not shown on the income statement.

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Definitions:

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A class of drugs that are used to treat erectile dysfunction by enhancing the effects of nitric oxide, increasing blood flow to the penis.

Erectile Problems

Issues related to achieving or maintaining an erection sufficient for satisfactory sexual performance.

Impotence

A term often used to describe erectile dysfunction, which is the inability to achieve or maintain an erection suitable for sexual intercourse.