Which combination of accounts and exchange rates is correct for the translation of a foreign entity's financial statements from the functional currency to U.S.dollars?
A)Option A
B)Option B
C)Option C
D)Option D

Question

Quizplus · Accepted Answer

Option B is the correct combination, as it uses the functional currency accounts for the foreign entity's financial statements and the current exchange rate for the translation to U.S. dollars. This is in line with the requirements of ASC 830, which states that the functional currency should be used for the translation of financial statements and the current exchange rate should be used for the conversion. Option A uses the wrong exchange rate, Option C uses the wrong accounts and exchange rate, and Option D uses the wrong accounts.

Which Combination of Accounts and Exchange Rates Is Correct for the Translation