If a Subsidiary Is Operating in a Highly Inflationary Economy

question 23

Multiple Choice

If a subsidiary is operating in a highly inflationary economy, how are the financial statements to be restated?

• A) Historical rate.
• B) Working capital rate.
• C) Translation.
• D) Remeasurement.
• E) Current rate.

---

Definitions:

Money Orders

A payment order for a pre-specified amount of money, often used as a safer alternative to cash or personal checks.

Post Office

A government-operated institution responsible for mail distribution and various postal services.

India

A country located in South Asia, known for its diverse culture, languages, and history, and as the world's largest democracy by electorate.

UCC

Stands for the Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States.