1. Which of the following is an incorrect statement?

a) For non-U.S. multinationals, translation of integrated foreign entities' financial statements requires the use of Current Rate (Closing rate) method

b) When translating foreign subsidiaries' financial statements, U.S. companies much follow rules set by the International Accounting Standards Committee

c) Another term for translation exposure is net exposed assets

d) When companies use the Temporal Method, the process is known as remeasurement

2. In the United States, the decision to use the current rate method or the temporal method for translating foreign subsidiaries' financial statements is based on ____

whether the assets and liabilities are monetary or non-monetary

the exchange rate

the functional currency

the reporting currency