Question #43
Reading: Reading 10 Multinational Operations
PDF File: Reading 10 Multinational Operations.pdf
Page: 24
Status: Correct
Correct Answer: A
Part of Context Group: Q43-45
First in Group
Shared Context
Question
The value of common stock on the 2013 balance sheet should be closest to:
Answer Choices:
A. $1,000
B. $1,100
C. $1,050
Explanation
Common stock is translated using the historical rate under both the temporal method and
the current rate method: 1300SF × 0.77$/SF = $1001.