in

In translating a foreign subsidiary’s financial statements, which exchange rate does the current method require for the subsidiary’s assets and liabilities?

In translating a foreign subsidiary’s financial statements, which exchange rate does the current method require for the subsidiary’s assets and liabilities?

A) The exchange rate in effect when each asset or liability was acquired.

B) The average exchange rate for the current year.

C) A calculated exchange rate based on market value.

D) The exchange rate in effect as of the balance sheet date.

E) The exchange rate in effect at the start of the current year.

Answer: D

What do you think?

Written by Homework Lance

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

What is a company’s functional currency?

When using the current rate method, the translation adjustment from translating a foreign subsidiary’s financial statements should be shown as