In cases of operations located in highly inflationary economies:
A. The foreign currency should be used as the functional currency with a single line item-foreign translation-reporting the adjustment using the U.S. dollar as the functional currency.
B. The foreign currency should be used as the functional currency with a footnote to the financials displaying what the earnings would have been using the U.S. dollar as the functional currency.
C. The reporting currency of the U.S. parent-the U.S. dollar-should be used as the foreign entity's functional currency.
D. None of the choices are correct.
Answer: C
You might also like to view...
Samsung and Apple actively generate new ideas, relentlessly pursue new solutions, and quickly work to get new products to market
They serve customers who want state-of-the-art products and services, regardless of the costs in terms of price or inconvenience. Which of the following value disciplines is illustrated from this example? A) operational excellence B) customer intimacy C) product leadership D) product activation E) product binning
According to Ted Levitt, author of The Marketing Imagination, people buy the:
A) expectations of the benefits you promised B) specific product you offered C) promise of a long-term relationship D) products that offer a "no hassle" guarantee E) image of the product
Most symbols are widely recognized by people of both a country's macroculture and microcultures
Indicate whether the statement is true or false.
Answer the following statement(s) true (T) or false (F)
1. The five core steps of SCM are: plan, source, make, deliver, and return. 2. The master production schedule is a very important document that is used exclusively by the operations department to plan production. 3. The longest path through a PERT diagram is called the critical path. 4. Program Evaluation and Review Technique (PERT) was developed in Japan during the 1950s. 5. Computer-aided engineering (CAE) includes the use of computers for controlling the operation of traditional, modified, and electronic machines—including robots.