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1. A subsidiary operating out of a country where the inflation rate over the last three years has averaged 50% should use the ___ method for translation.

current rate

temporal

historical rate

monetary

2. The temporal method becomes the monetary/non-monetary method when ___

the historical rate is greater than the current rate

the foreign subsidiary has a operating loss

inventory and net plant and equipment are not regularly restated to reflect market value

the current rate is greater than the historical rate

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92765571

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