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:

Verbal Signposts

Oral cues used in communication to signal the structure of a speech or presentation, guiding the listener through the content.

Previews

Short demonstrations or descriptions provided before the main content, product, or event, intended to give a glimpse of what to expect.

Summaries

Concise presentations of the main points or ideas of a larger document or conversation.

Transitions

The process or period of changing from one state or condition to another in writing, speech, or through physical movements.