Where Is the Disposition of a Remeasurement Gain or Loss

question 21

Multiple Choice

Where is the disposition of a remeasurement gain or loss reported in the parent company's financial statements?

• A) Net income/loss in the income statement.
• B) Cumulative translation adjustment as a deferred asset.
• C) Cumulative translation adjustment as a deferred liability.
• D) Other comprehensive income.
• E) Retained earnings.

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Definitions:

Time-Driven Activity-Based Costing

A method of costing that assigns costs based on the actual duration of activities and the cost of supplying resources, rather than on estimated allocations.

Order Fulfillment Department

A department within a company responsible for processing customer orders and ensuring their delivery in a timely and accurate manner.

Capacity Analysis

The evaluation of a company's ability to meet its production goals with the current resources and what steps are necessary to adjust to meet demand.

Time-Driven Activity-Based Costing

A costing method that assigns costs to products or services based on the estimated time required to perform activities and the rate at which those activities consume resources.