Gains or losses caused by translation adjustments

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Reference no: EM131933675

1. According to the International Accounting Standards Committee, an integrated foreign entity __

A. should have its inventory considered as monetary

B. should use the temporal method for translation

C. is operating in a hyper inflationary country

D. operates more or less as an independent company

2. Gains or losses caused by translation adjustments when using the temporal method are ________.

A. added to (if it is a gain) or deducted from (if it is a loss) the cash account on the balance sheet

B. added to the cumulative translation adjustment account

C. added to the income statement in the current period

D. added to the statement of cash flow

Reference no: EM131933675

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