In Accounting, the Term Translation Refers to

question 33

Multiple Choice

In accounting, the term translation refers to

• A) the calculation of gains or losses from hedging transactions.
• B) the calculation of exchange rate gains or losses on individual transactions in foreign currencies.
• C) the procedure required to identify a company's functional currency.
• D) the calculation of gains or losses from all transactions for the year.
• E) a procedure to prepare a foreign subsidiary's financial statements for consolidation.

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Definitions:

Common Stock

Equity ownership in a corporation, with voting rights and potential dividends.

Accounts Payable

The sum of funds that a company is required to pay to its suppliers for goods and services obtained on credit.

Retained Earnings Account

An equity account that represents the cumulative earnings of a company that have not been distributed to shareholders as dividends.

Statement of Stockholders' Equity

A financial statement that shows changes in the value of a company's equity over a specific period, including stocks and retained earnings.