The ………determines accounting policy for U.S. firms.

The two basic methods for the translation of foreign subsidiary financial statements are the…….method and the …….. method.

The temporal rate method is the most prevalent method today for the translation of financial statements.

Gains or losses caused by translation adjustments when using the current rate method are reported separately on the…….. .

The biggest advantage of the current rate method of reporting translation adjustments is the fact that the gain or loss goes directly to the reserve account on the consolidated balance sheet and does not pass through the consolidated income statement.

Under the current rate method, specific assets and liabilities are translated at exchange rates consistent with the timing of the item's creation.

The main technique to minimize translation exposure is called a/an …….. hedge.

If a firm's subsidiary is using the local currency as the functional currency, which of the following is NOT a circumstance that could justify the use of a balance sheet hedge?

Management can easily offset both translation and transaction exposure through

Under the current rate method, when management anticipates appreciation of a foreign currency it A. may move funds from cash to savings.

If the British subsidiary of a European firm has net exposed assets of £250,000, and the pound drops in value from euro 1.40/£ to euro 1.30/£, the European firm has a translation……….. .