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When a Multinational Consolidates the Financial Statements, the Foreign Business

Question 49

Multiple Choice

When a multinational consolidates the financial statements, the foreign business values must be converted to domestic values. If the exchange rate of the domestic currency has appreciated relative to the foreign currency, there will be a resultant:


A) accounting gain in translation.
B) real income gain in translation.
C) accounting loss in translation.
D) real income loss in translation.

Correct Answer:

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