Which of the Following Is a True Statement Regarding SFAS

question 49

Multiple Choice

Which of the following is a true statement regarding SFAS No. 52?

• A)When a foreign entity's currency is the functional currency, net income is measured in the foreign currency and then restated into dollars at the current exchange rate at the end of the period.
• B)When a foreign entity's currency is the functional currency, any exchange adjustment resulting from translating balance sheet and income statement items at different exchange rates is recognized as a gain or loss on the income statement.
• C)When a foreign entity's currency is the functional currency, all balance sheet items are translated at the average exchange rate for the period.
• D)If the results of foreign-currency-denominated operations will not affect U.S. dollar cash flows, no exchange gain or loss is recorded.

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Definitions:

Math Test

is an assessment used to measure a person's mathematical understanding, skills, and abilities.

Instrumental Dimension

Pertains to the practical, functional, or utilitarian aspects of something, focusing on means to achieve an end.

Affective

Pertains to emotions or feelings, often used in psychology to describe aspects of human behavior and mental processes related to mood, emotions, and affective states.

Stereotypic Traits

Generalized and often simplified characteristics attributed to a particular group of people, frequently based on misconceptions or incomplete information.