If the USDollar Is the Currency in Which the Foreign Affiliate's Books

question 28

Multiple Choice

If the U.S.dollar is the currency in which the foreign affiliate's books and records are maintained,and the U.S.dollar is also the functional currency,

• A)the translation method should be used for restatement.
• B)the remeasurement method should be used for restatement.
• C)either translation or remeasurement could be used for restatement.
• D)no restatement is required.

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Definitions:

Worker's Output

The quantity of goods or services produced by an employee within a certain period of time.

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders, and is authorized to act as a single entity, legally endowed with rights and responsibilities.

Accounting Profit

The total revenue of a firm minus the explicit costs directly tied to those revenues.

Economic Profit

The difference between total revenues and total costs, including both explicit and implicit costs.