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:

Shares Exchange

The process of trading shares of one company for those of another, often during mergers or acquisitions.

Model Business Corporation Act

A template for states to use in drafting their corporate statutes, aimed at standardizing corporate law.

Shareholders Meeting

A formal gathering of the shareholders of a company to discuss and vote on company business.

Special Meeting

A meeting called for a specific purpose, outside of the regularly scheduled sessions.