If the Functional Currency Is Determined to Be the U

question 5

Multiple Choice

If the functional currency is determined to be the U.S. dollar and its financial statements are prepared in the local currency, SFAS 52, requires which of the following procedures to be followed?

• A) Translate the financial statements into U.S. dollars using the current rate method.
• B) Remeasure the financial statements into U.S. dollars using the temporal method.
• C) Translate the financial statements into U.S. dollars using the temporal method.
• D) Remeasure the financial statements into U.S. dollars using the current rate method.

---

Definitions:

Business Practices

The methods, tactics, and routines used by companies to conduct business, ranging from operations, management to customer interaction.

Employee-Friendly

Corporate policies or practices designed to provide a supportive and accommodating work environment for employees.

Overtime

Additional time worked by an employee beyond their regular working hours, typically compensated at a higher pay rate.

Environmental Regulations

Laws and policies aimed at protecting the environment by setting standards and guidelines for pollution control, resource management, and ecosystem preservation.