When a Multinational Consolidates the Financial Statements, the Foreign Business

question 23

Multiple Choice

When a multinational consolidates the financial statements, the foreign business values must be converted to domestic values. If the exchange rate of the domestic currency has appreciated relative to the foreign currency, there will be a resultant:

• A) accounting gain in translation.
• B) real income gain in translation.
• C) accounting loss in translation.
• D) real income loss in translation.

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Definitions:

Gestation

The period of development from the fertilization of the ovum to the birth of an organism, commonly used in reference to human pregnancy.

Imbalanced Nutrition

A state where an individual's dietary intake does not provide the necessary nutrients for healthy bodily function.

Caloric Intake

The total number of calories consumed through food and beverages within a specific time period, indicating energy intake.

Metabolic Needs

The essential requirements for energy and nutrients necessary for an organism's growth, maintenance, and functions.