When a Foreign Entity Has the U

question 38

Multiple Choice

When a foreign entity has the U.S.dollar as its functional currency,it uses which exchange rate to translate monetary assets and liabilities?

• A) the average exchange rate during the period
• B) the end of the period exchange rate
• C) the historical exchange rate
• D) the exchange rate on the date the asset or liability was obtained

---

Definitions:

Withheld

Refers to a portion of an employee's wages not paid out directly to them but instead held back for purposes such as tax payments.

Social Security

A government program that provides financial assistance to people with insufficient or no income, especially the elderly, disabled, and unemployed.

Medicare

A federal health insurance program in the United States for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease.

Federal Unemployment Taxes

Taxes paid by employers to fund the federal government's oversight of the state's unemployment compensation programs.