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Stockholders' Equity of a Foreign Subsidiary Is Translated into Dollars

Question 132

Multiple Choice

Stockholders' equity of a foreign subsidiary is translated into dollars on a consolidated balance sheet at the:


A) exchange rate in effect on the date of the financial statements.
B) anticipated exchange rate in effect over the next 5 years.
C) average exchange rate in effect over the past 5 years.
D) older, historical exchange rates.

Correct Answer:

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