Complete the following statement by choosing the best response:
If the functional currency of a foreign subsidiary is the local currency of the country in which the foreign subsidiary operates, then

Question

Quizplus · Accepted Answer

If the functional currency of a foreign subsidiary is the local currency of the country in which the foreign subsidiary operates, then the foreign subsidiary's financial statements are translated into U.S. dollars. This process is known as "translation" and all assets, liabilities, equity, revenues, and expenses are translated using the current exchange rate between the local currency and the U.S. dollar. Therefore, option A is the correct answer.

Complete the Following Statement by Choosing the Best Response