According to Which Method Is the Foreign Currency Translation Gain

question 38

Multiple Choice

According to which method is the foreign currency translation gain or loss taken to stockholders' equity?

• A) the current rate method
• B) the consolidation method
• C) the temporal method
• D) the conversion method

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Definitions:

Equity-Financed

A method of raising capital through the sale of shares in the company, leading to shareholder ownership.

Firm A

A placeholder name often used to refer to a specific company in examples or case studies.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment, calculating the difference between the present value of cash inflows and outflows.

Company Stock

Shares of ownership in a corporation, representing a claim on the company's earnings and assets.