When a Multinational Consolidates the Financial Statements, the Foreign Business

question 23

Multiple Choice

When a multinational consolidates the financial statements, the foreign business values must be converted to domestic values. If the exchange rate of the domestic currency has appreciated relative to the foreign currency, there will be a resultant:

• A) accounting gain in translation.
• B) real income gain in translation.
• C) accounting loss in translation.
• D) real income loss in translation.

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Definitions:

Validate

To confirm or substantiate the legitimacy or accuracy of something.

Audience

The intended receivers or consumers of a message, performance, or piece of writing, who can vary in their expectations, needs, or demographics.

Presentation Visuals

Graphical elements specifically designed to support and enhance oral presentations or public speeches.

Figure Numbers

A term typically used to represent statistical data, numerical findings, or specific amounts in a structured format for analysis or presentation.