If the Assets of a Foreign Operation Exceed Its Liabilities,and

question 33

Multiple Choice

If the assets of a foreign operation exceed its liabilities,and the value of the Australian dollar falls relative to the currency of the foreign operations,there will be:

• A) A credit to the 'Foreign Currency Translation Reserve' in the consolidated accounts.
• B) A debit to the 'Foreign Currency Translation Reserve' in the consolidated accounts.
• C) A credit to 'Foreign Currency Translation Revenue in the consolidated accounts.
• D) A debit to the 'Foreign Currency Translation Expense in the consolidated accounts.
• E) No impact on the consolidated accounts