Which of the Following Statements Regarding the Translation of Financial

question 49

Multiple Choice

Which of the following statements regarding the translation of financial statements from the "functional currency" to the "presentation currency" is FALSE?

• A)Entities may choose to present their financial statements in any currency.
• B)Given the rising trend towards globalization, management may like to present their financial statements in a currency different from their functional currency in order to attract investors or because it is required by local law or other regulation.
• C)A company may display its statements in a language more relatable to a global marketplace used to viewing financial information denominated in a currency not functional to the entity.
• D)Any gain or loss on translation is considered part of income.

---

Definitions:

Amounts Being Produced

Refers to the volume or quantity of goods and services that are generated or manufactured by a business or economy over a specific time period.

Social Security Check

A monthly payment issued by the government to eligible individuals, typically retirees, disabled persons, and survivors of deceased workers, as part of a social insurance program.

U.S. GDP

The total market value of all goods and services produced within the United States in a given year.

Groceries

Items of food and other household necessities that are purchased regularly for consumption.