Matching Key TermsMatch the descriptions of terms on the left with the terms on the right....

Descriptions of Terms

Terms

1.

The group that has attempted to harmonize the world’s many different accounting methods.

A.

Financial Accounting Standards Board

2.

The currency of the primary economic environment in which the entity operates.

B.

Remeasurement gain or loss

3.

The functional currency for a U.S. subsidiary located in a country with > 100 percent inflation over the last three years.

C.

Translation adjustment

4.

Translation of all assets and liabilities of a foreign subsidiary using the foreign exchange rate at the balance sheet date.

D.

Current rate method

5.

Restatement of the fixed assets and inventories of a foreign subsidiary into U.S. dollars using historical exchange rates.

E.

Remeasurement method

6.

Inclusion of this gain or loss on the U.S. company’s statement of income as part of net income.

F.

U.S. dollar

7.

The item that balances the debits and credits of the foreign subsidiary’s adjusted trial balance in U.S. dollars, assuming the functional currency is the currency of the foreign subsidiary’s country.

G.

Functional currency

8.

The item that balances the debits and credits of the foreign

H.

International Accounting

subsidiary’s adjusted trial balance in U.S. dollars, assuming the

Standards Board

functional currency is the U.S. dollar.

9.

Translation of the statement of income accounts of a foreign subsidiary using the average exchange rate for the year.

I.

International Managerial Accounting Society

10.

Restatement of depreciation expense and cost of goods sold of a foreign subsidiary using historical exchange rates.

J.

Functional currency indicators

11.

An analysis of a foreign subsidiary’s cash flows, sales prices, sales markets, expenses, and financing.

K.

Historical rate method

12.

The periodic change in this item reported as a component of other comprehensive income.

L.

Cumulative transaction gain or loss