If the USDollar Is the Currency in Which the Foreign Affiliate's Books

question 28

Multiple Choice

If the U.S.dollar is the currency in which the foreign affiliate's books and records are maintained,and the U.S.dollar is also the functional currency,

• A)the translation method should be used for restatement.
• B)the remeasurement method should be used for restatement.
• C)either translation or remeasurement could be used for restatement.
• D)no restatement is required.

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Definitions:

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded, often considered the resting point of the market.

Equilibrium Quantity

The quantity at which the amount of goods supplied is equal to the amount of goods demanded.

Equilibrium Quantity

The quantity of goods or services supplied in the market at which the quantity demanded equals the quantity supplied, leading to a stable market price.

Supply

The total amount of a good or service that is available for purchase at any given price level.