When accounting for self-contained foreign subsidiaries,the parent company uses which one of the following methods for the translation of its financial statements into dollars?

Question

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The parent company uses the current rate method to translate the financial statements of its self-contained foreign subsidiaries into dollars. This method uses the current exchange rate at the balance sheet date to translate the subsidiary's assets and liabilities into dollars. The income statement accounts are translated at the average exchange rate for the period. This method is the most commonly used for financial reporting purposes.

When Accounting for Self-Contained Foreign Subsidiaries,the Parent Company Uses Which