Which of the Following Best Describes the Measurement of a Gain

question 19

Multiple Choice

Which of the following best describes the measurement of a gain or loss from the sale of a depreciable asset by a foreign subsidiary whose functional currency is not the local currency?

• A)​Reconstruct the journal entry on the date of the sale using the historical rate for cash and the depreciable asset and its accumulated depreciation.
• B)​Reconstruct the journal entry on the date of the sale using the current rate for cash and the historical rate for the depreciable asset and its accumulated depreciation.
• C)​Translate the gain or loss using the historical rate.
• D)​Translate gains at the current rate and losses at the historical rate.

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Definitions:

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A statistical technique used to model the probability of a certain class or event existing such as pass/fail, win/lose, alive/dead, based on multiple independent variables.

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A statistical method for predicting binary outcomes by modeling the probability of a variable based on its logarithm.