In Accounting, the Term Translation Refers to

question 33

Multiple Choice

In accounting, the term translation refers to

• A) the calculation of gains or losses from hedging transactions.
• B) the calculation of exchange rate gains or losses on individual transactions in foreign currencies.
• C) the procedure required to identify a company's functional currency.
• D) the calculation of gains or losses from all transactions for the year.
• E) a procedure to prepare a foreign subsidiary's financial statements for consolidation.

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Definitions:

Income Statement

A financial statement that shows a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income.

Contribution Margin

The difference between sales revenue and variable costs of a product or service, indicating how much contributes towards covering fixed costs and generating profit.

Gross Margin

A financial measurement that calculates the difference between a company’s total revenue and the cost of goods sold, expressed as a percentage of total revenue.

Variable Costing

An accounting method that records variable costs (costs that change with production levels) as product costs, while fixed costs are recorded as expenses in the period they are incurred.