When the Local Currency of the Foreign Subsidiary Is the Functional

question 50

Multiple Choice

When the local currency of the foreign subsidiary is the functional currency,a foreign subsidiary's income statement accounts would be converted to U.S.dollars by:

• A) translation using historical exchange rates.
• B) remeasurement using current exchange rates at the time of statement preparation.
• C) translation using average exchange rate for the period.
• D) remeasurement using the current exchange rate at the time of statement preparation.

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Definitions:

Public Good

A good that is non-excludable and non-rivalrous, meaning that its use by one person does not reduce its availability to others and no one can be effectively excluded from using it.

Optimal Level

The most favorable balance or degree of any variable or condition for achieving maximum efficiency or effectiveness.

Public Good

A product or service that is available for all people to consume, without being depleted, regardless of who pays for it.

Public Good

Services or products are given freely to all members of society, supplied by either public institutions or private sectors, with no intention to profit.