Assets and Liabilities of a Foreign Subsidiary Are Translated into Dollars

question 7

Multiple Choice

Assets and liabilities of a foreign subsidiary are translated into dollars on a consolidated balance sheet at the:

• A)exchange rate in effect on the date of the financial statements.
• B)anticipated exchange rate in effect over the next 5 years.
• C)average exchange rate in effect over the past 5 years.
• D)older, historical exchange rates on the date of the purchase of the subsidiary's stock.

---

Definitions:

Social Skills

The abilities necessary to communicate, interact, and form relationships with others effectively.

Human Nature

The inherent characteristics, including ways of thinking, feeling, and acting, that all humans tend to have.

Serial Monogamy

A series of exclusive sexual relationships.

Exclusive Sexual Relationships

Refers to a committed relationship where partners agree to have sexual relations only with each other.