According to SFAS 52,which Method Is Usually Required for Translating

question 47

Multiple Choice

According to SFAS 52,which method is usually required for translating a foreign subsidiary's financial statements into the parent's reporting currency?

• A)the temporal method.
• B)the current rate method.
• C)the current/noncurrent method.
• D)the monetary/nonmonetary method.
• E)the noncurrent rate method.

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Definitions:

Internal Control System

A process put in place by a company's management and board of directors to help ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Protect Assets

Measures and strategies implemented by a business or individual to safeguard tangible and intangible assets from loss, theft, or damage.

Internal Control Systems

Procedures and mechanisms implemented by a business to safeguard assets, enhance the reliability of financial reports, and ensure compliance with laws and regulations.

Cost-Benefit Principle

This principle involves analyzing whether the cost of an action outweighs its benefits before proceeding with the decision.