Under the current/noncurrent method
A)a foreign subsidiary with current assets in excess of current liabilities will cause a translation gain (loss)if the local currency appreciates (depreciates).
B)a foreign subsidiary with current assets in excess of current liabilities will cause a translation loss (gain)if the local currency appreciates (depreciates).
C)a foreign subsidiary with current assets in excess of current liabilities will cause a translation gain (loss)if the local currency depreciates (appreciates).
D)a foreign subsidiary with current assets in excess of current liabilities will cause a translation loss (gain)if the local currency appreciates (depreciates),and a foreign subsidiary with current assets in excess of current liabilities will cause a translation gain (loss)if the local currency depreciates (appreciates).

Question

Quizplus · Accepted Answer

Under the current/noncurrent method, a foreign subsidiary with current assets in excess of current liabilities will cause a translation gain if the local currency appreciates because the current assets will be translated at a higher rate. Conversely, if the local currency depreciates, the subsidiary will experience a translation loss.

Under the Current/noncurrent Method