1.3. Match the terms in the list to the definitions below. Each term may be used only once.

(1 point per question; 10 points total)

A. Translation F. Local currency

B. Restatement G. Functional currency

C. Temporal method H. Translation gain or loss

D. Current rate method I. FASB ASC subtopic 830-30

E. Reporting currency J. Cumulative translation adjustment

_____ 1. The currency of the country in which the company is domiciled

_____ 2. Changing FC to the currency of the financial statements

_____ 3. The FASB document which outlines the rules for translation

_____ 4. Changing FC to the currency which best reflects financial reality

_____ 5. The result of changing the financial statements from FC to US$

_____ 6. The currency used on the financial statements

_____ 7. A technique to restate the financial records to the functional currency

_____ 8. The currency which provides information most compatible with the economic effects of exchange rate differences

_____ 9. The translation method which changes the functional currency to the reporting currency

_____10. The equity account which reflects the economic effects of exchange rate differences