Which of the Following Statements Is Correct

question 4

Multiple Choice

Which of the following statements is correct?

• A) If an organization is self-sustaining (i.e., the functional currency of the foreign operation is different than the parent), depreciation and amortization must be translated using closing rates.
• B) If an organization is self-sustaining (i.e., the functional currency of the foreign operation is different than the parent), depreciation and amortization must be translated using average rates.
• C) If an organization is considered an integrated foreign subsidiary (i.e., the functional currency of the foreign operation is different than the parent), depreciation and amortization must be translated using historical rates.
• D)If an organization is considered an integrated foreign subsidiary (i.e., the functional currency of the foreign operation is the same as the parent), depreciation and amortization must be translated using closing rates.

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Definitions:

Technological Change

The process of innovation and development in technology, leading to new products, improved processes, and increased efficiency.

Production Processes

The methods and sequences of activities involved in the manufacture of goods, encompassing everything from material selection to final output.

Economic Growth

An increase in the capacity of an economy to produce goods and services, compared from one period of time to another.

Emerging Economies

Countries with developing industrial bases, experiencing rapid economic growth and increasing involvement in the global market.