Question #21

Reading: Reading 10 Multinational Operations

PDF File: Reading 10 Multinational Operations.pdf

Page: 11

Status: Correct

Correct Answer: B

Part of Context Group: Q21-22 First in Group
Shared Context
- The Net Income of Grande, Inc., expressed in U.S. dollars for the year ended December 31, 2012, is closest to: A) $250,000. B) $550,000. C) $500,000.
Question
The translation gain or loss from the activities of Grande, Inc., should be reported in the:
Answer Choices:
A. income statement
B. equity accounts
C. statement of cash flows
Explanation
Under the current rate method, translation gains or losses are accumulated on the balance sheet in the equity section.
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