Which of the Following Statements Is True of Non-Local Currency

question 23

Multiple Choice

Which of the following statements is true of non-local currency balances in the foreign currency financial statements of foreign operations?

• A) These are not reported in the consolidated financial statements.
• B) Any gain is shown in the balance sheet of the company as an asset.
• C) Any loss is reflected in the measurement of consolidated net income.
• D) No gain or loss is reported in the financial statements.

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Definitions:

NAFTA

The North American Free Trade Agreement, a trilateral trade bloc in North America created by Canada, Mexico, and the United States to reduce trading costs, increase business investment, and help North America be more competitive in the global marketplace.

U.S. Farmers

Individuals or entities in the United States engaged in agricultural activities, including the cultivation of crops and raising of livestock.

Restrictions

Limitations or constraints placed on actions, activities, or movements.

Facebook

Facebook is a widely-used social networking platform that allows users to create profiles, share photos and videos, send messages, and keep in touch with friends, family, and groups.