All of the following stockholders' equity accounts of a foreign subsidiary are translated at historical exchange rates except:
A)retained earnings.
B)common stock.
C)additional paid-in capital.
D)preferred stock.

Question

Quizplus · Accepted Answer

Retained earnings are translated at historical exchange rates, except for the portion that represents undistributed earnings of a foreign subsidiary, which are translated at the current rate. However, in this question, retained earnings are the exception to the rule stated, implying that they are not translated at historical rates like the other options (common stock, additional paid-in capital, and preferred stock), which are typically translated at historical rates.

All of the Following Stockholders' Equity Accounts of a Foreign