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.

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Definitions:

Telegraphic Speech

A stage in language acquisition where young children communicate using simple, two-word sentences, focusing on essential words while omitting smaller ones.

Outcome Simulations

The process of mentally visualizing the outcomes of specific actions or behaviors.

Universal Grammar

A theory in linguistics that suggests that the ability to acquire language is innate, and that all human languages share a common underlying structure.

Noam Chomsky

An American linguist, philosopher, and cognitive scientist known for revolutionizing the study of linguistics with his theory of generative grammar.