1. For PetroFina, a Belgian [national currency is EUR] petro-chemical multinational corporation with operations in the U.S. [national currency is USD], Canada [national currency is CAD], and Japan [national currency is JPY], the reporting currency PetroFina uses for its consolidated financial statements is the ___

a) CAD

b) EUR

c) JPY

d) USD

2. Under the current rate method, translation gains or losses are reported separately and accumulated in a separate equity account called

a) cumulative translation adjustment

b) retained earnings

c) common stock

d) paid-in capital

e) net income