Question

Which of the following statements is true regarding the cumulative translation adjustment? Select one: Changes in the cumulative translation adjustment are reported in the income statement at each statement date. The cumulative translation adjustment account affects the amount of gain or loss reported upon the sale of a foreign subsidiary. Changes in the cumulative translation adjustment account are added back in the computation of net cash flow from operating activities since they are non-cash income or expense. The cumulative translation adjustment account is reported in accumulated other comprehensive income and is transferred into reported earnings when the transaction to which it relates affects reported earnings.

Answer 1

Answer:

The true statement is "The cumulative translation adjustment account affects the amount of gain or loss reported upon the sale of a foreign subsidiary".

Explanation:

The current technique needs that each one quality and accountability books be interpreted at this rate whereas shareholders’ justice accounts are interpreted at ancient altercation rates. The distinction is mirrored finished the additive conversion alteration, therefore the quantity of improvement or loss according upon the auction of a distant secondary to the additive conversion alteration.