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Question 23

Multiple Choice

How should a U.S. company with an international subsidiary decide whether to use remeasurement or translation to convert the accounts of the subsidiary to U.S. dollars?


A) Translate if the subsidiary does most of its business in its own country but remeasure if the country has hyperinflation.
B) Remeasure if the subsidiary does most of its business in U.S. dollars, but translate if the country has hyperinflation.
C) Translate if the subsidiary does most of its business in U.S. dollars, but remeasure if the country has hyperinflation.
D) Remeasure if the subsidiary does most of its business in its own country but translate if the country has hyperinflation.

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