Which of the Following Statements Is Correct

question 1

Multiple Choice

Which of the following statements is correct?

• A)If an organization is self-sustaining,revenues must be translated using closing rates.
• B)If an organization is self-sustaining,revenues must be translated using average rates.
• C)If an organization is self-sustaining,revenues must be translated using historical rates.
• D)If an organization is considered an integrated foreign subsidiary revenues must be translated using average rates.

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Definitions:

Market Rate

The prevailing price or interest rate available in the marketplace for goods, services, or securities.

Coupon Rate

The coupon rate is the annual interest rate paid by a bond relative to its face value, expressed as a percentage.

Principal Amount

The initial size of a loan or bond or the amount of money invested, excluding any interest or dividends.

Coupon Rate

The interest rate stated on a bond or fixed-income security, representing the annual payout as a percentage of the bond's face value.