If a Subsidiary Is Operating in a Highly Inflationary Economy

question 23

Multiple Choice

If a subsidiary is operating in a highly inflationary economy, how are the financial statements to be restated?

• A) Historical rate.
• B) Working capital rate.
• C) Translation.
• D) Remeasurement.
• E) Current rate.

---

Definitions:

Personal Potential

The capacity for an individual to develop and achieve personal growth and improvement over time.

Metapathology

A thwarting of self-development related to failure to satisfy the metaneeds.

Maslow

Refers to Abraham Maslow, an American psychologist known for creating Maslow's hierarchy of needs, a theory in psychology regarding human motivation.

Self-actualizers

Individuals who have realized and fulfilled their potential to the fullest extent, a concept at the top of Maslow's hierarchy of needs.