Which of the Following Is Not Correct Regarding the Translation

question 17

Multiple Choice

Which of the following is not correct regarding the translation of a foreign entity's accounts?

• A) Translation uses the historical rate at the date a foreign subsidiary was acquired for the paid-in capital amounts.
• B) Translation uses the current rate method.
• C) Translation should be used in a translating the accounts of a foreign entity operating in a highly inflationary economy.
• D) Foreign currency translation adjustments are displayed under the accumulated comprehensive income section of the translated balance sheet.

---

Definitions:

Interactive Process

An ongoing method involving two or more parties that influence each other through action and reaction.

Complex

Consisting of many different and connected parts, not easy to analyze or understand.

Mutually Affect

The concept that entities or variables can influence each other reciprocally in a system or relationship.

Disciplined Attention

The focused and consistent concentration on selected areas or activities, often as part of strategic leadership or personal development.