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:

Political/legal Change

Alterations in the political or legal environment that can impact businesses, economies, and societies.

Economic Change

Alterations in the structure or performance of an economy, often driven by factors such as technological advancements, policy changes, or market dynamics.