The Gain or Loss on the Effective Portion of a U.S.parent

question 45

Multiple Choice

The gain or loss on the effective portion of a U.S.parent company's hedge of a net investment in a foreign entity should be treated as:

• A)an adjustment to the retained earnings account in the stockholders' equity section of its balance sheet.
• B)other comprehensive income.
• C)a translation gain or loss in the computation of net income for the reporting period.
• D)an adjustment to a valuation account in the asset section of its balance sheet.

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Definitions:

Work In Process Inventory

Goods that are in the production process but have not yet been completed.

Process Operation

The segment of a manufacturing or production process that involves specific tasks to convert raw materials into finished products.

Process Cost Summary

A report that outlines the production costs associated with each step of a manufacturing process, typically used in industries where products are mass-produced.

Work In Process Inventory

Items that are in the production process but have not yet been completed or transformed into finished goods.