FASB No. 52 is a statement issued by the Financial Accounting Standards Board requiring American MNCs to first convert the financial statement accounts of foreign subsidiaries into the country's ________ currency and then translate the accounts into the parent firm's currency using the ________ method.
A. spot; historical rate
B. functional; all-current-rate
C. principal; average rate
D. forward rate; weighted average
Answer:B
FASB No. 52 is a statement issued by the Financial Accounting Standards Board requiring American MNCs to first convert the financial statement accounts of foreign subsidiaries into the country's ________ currency and then translate the accounts into the parent firm's currency using the ________ method.
A. spot; historical rate B. functional; all-current-rate C. principal; average rate D. forward rate; weighted average