Using the Temporal Method of Translating Foreign Currency Financial Statements

question 44

Multiple Choice

Using the temporal method of translating foreign currency financial statements, what basis should be employed when using the "lower of cost or market" rule for inventory valuation?

• A) Lower of parent currency cost or parent currency market at current exchange rate
• B) Lower of subsidiary currency cost or subsidiary currency market at appropriate exchange rate
• C) Lower of parent currency cost or parent currency market at appropriate exchange rate
• D) Lower of subsidiary currency cost or parent currency market at current exchange rate

---

Definitions:

Conflict Theorists

Sociologists who argue that conflict is the driving force of social change and society is in a continuous state of discord due to competition for limited resources.

Symbolic Interactionist

A practitioner or advocate of the theoretical perspective in sociology that emphasizes the role of symbols and language in human interaction.

New Religious Movements

Religious, ethical, or spiritual groups that have emerged relatively recently and offer new interpretations or spiritual paths aside from traditional religions.

Confucius

An ancient Chinese philosopher and educator whose teachings and philosophy emphasize personal and governmental morality, correctness of social relationships, justice, and sincerity.