In Cases of Operations Located in Highly Inflationary Economies

question 18

Multiple Choice

In cases of operations located in highly inflationary economies:

• A)The reporting currency of the U.S.parent-the U.S.dollar-should be used as the foreign entity's functional currency.
• B)The foreign currency should be used as the functional currency with a footnote to the financials displaying what the earnings would have been using the U.S.dollar as the functional currency.
• C)The foreign currency should be used as the functional currency with a single line item-foreign translation-reporting the adjustment using the U.S.dollar as the functional currency.
• D)None of the choices are correct.

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Definitions:

Stratified Random Sampling

A sampling method that divides the population into smaller groups, or strata, and random samples are taken from each stratum.

Ethical Considerations

Refers to the moral principles and guidelines that should guide researchers to conduct studies responsibly and with respect for subjects' rights.

Sample Number

The count of individual units selected from a population to represent the whole, used in statistical analysis to draw conclusions about the larger group.

Convenience Sampling

A non-probability sampling method where participants are selected based on their easy availability and proximity to the researcher, which may limit the generalizability of the findings.