Under the U

question 10

Multiple Choice

Under the U.S. method of translation procedures, if the financial statements of the foreign subsidiary of a U.S. company are maintained in the local currency, and the local currency is the functional currency, then:

• A) the translation method to be used is not obvious.
• B) translation is accomplished through the temporal method.
• C) translation is not required.
• D) translation is accomplished through the current rate method.

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Definitions:

Flexibility of Practice

The capacity of a firm or practitioner to adjust and adapt procedures or methods in response to different situations or requirements.

Managerial Accounting

The practice of analyzing, interpreting, and communicating financial information to managers for the purpose of making informed business decisions.

Internal Operations

The activities and processes carried out within an organization to keep it running, including production, human resources, and finance.

Manufacturing Statement

A financial statement that summarizes the costs of producing goods during a specific period.