REFERENCE: Ref.10_02 Darron Co.was Formed on January 1,2009 as a Wholly Owned

question 90

Multiple Choice

REFERENCE: Ref.10_02
Darron Co.was formed on January 1,2009 as a wholly owned foreign subsidiary of a U.S.corporation.Darron's functional currency was the stickle (§) .The following transactions and events occurred during 2007:
SHAPE \* MERGEFORMAT

-Which of the following translation methods was originally mandated by SFAS No.8?

• A)Current/Noncurrent Method.
• B)Monetary/Nonmonetary Method.
• C)Current Rate Method.
• D)Temporal Method.
• E)Indirect Method.

---

Definitions:

Liabilities

Financial obligations or debts that a company or individual owes to others.

GAAP

Generally Accepted Accounting Principles, a collection of commonly followed accounting rules and standards for financial reporting.

Accounting and Financial Reporting

The process of recording, summarizing, and reporting the financial transactions of a business to provide an accurate picture of its financial position and performance.

Liability

Anything owed to creditors—the claims of a company’s creditors.