Question #77
Reading: Reading 10 Multinational Operations
PDF File: Reading 10 Multinational Operations.pdf
Page: 43
Status: Unattempted
Correct Answer: B
Question
Which of the following asset or liability values is likely to be the most understated in a hyperinflationary economy if translation occurs under the current rate method?
Answer Choices:
A. A plant purchased several years ago
B. Dividends payable
C. Accounts receivable
Explanation
The accounts receivable and dividends payable will each have book values that are closer
to their market values than a plant purchased many years ago.