In Translating a Foreign Subsidiary's Financial Statements, Which Exchange Rate

question 89

Multiple Choice

In translating a foreign subsidiary's financial statements, which exchange rate does the current method require for the subsidiary's assets and liabilities?

• A) the exchange rate in effect when each asset or liability was acquired.
• B) the average exchange rate for the current year.
• C) a calculated exchange rate based on market value.
• D) the exchange rate in effect as of the balance sheet date.
• E) the exchange rate in effect at the start of the current year.

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