The Gain or Loss on the Effective Portion of a U.S.parent

question 45

Multiple Choice

The gain or loss on the effective portion of a U.S.parent company's hedge of a net investment in a foreign entity should be treated as:

• A)an adjustment to the retained earnings account in the stockholders' equity section of its balance sheet.
• B)other comprehensive income.
• C)a translation gain or loss in the computation of net income for the reporting period.
• D)an adjustment to a valuation account in the asset section of its balance sheet.

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Definitions:

Primary Occupation

The main job or profession through which an individual gains the majority of their income or spends the most working hours.

Inherent Factors

Characteristics or attributes that naturally exist within a person, object, or situation from the beginning.

Flexible and Innovative

The ability to adapt to changes and introduce new ideas or procedures effectively.

Management Expertise

The specialized knowledge and skills required to effectively organize, direct, and control business operations.