28. Which of the following statements is true? The functional currency cannot be changed once it is selected. If the functional currency is changed, prior financial statements continue to be reported in the previous functional currency. The functional currency can be changed as often as is deemed necessary to minimize fluctuations in reported earnings. If the functional currency is changed, previously issued financial statements should be restated into the new functional currency A) B) C) D) 29. Which of the following are indications that the subsidiary is not autonomous? A) B) C) D) Significant assets may be acquired from the parent or otherwise by expending the parent's functional currency The sale of assets may make available to the parent units of the parent's functional currency Financing is primarily by the parent or otherwise in the parent's functional currency All of the above 30, Which of the following best describes the translation of financial statements? A) All asset, liability and equity accounts are translated at the current exchange rate orn B) C) D) All equity accounts are translated at their respective historical exchange rates the financial statement date. All asset, liability and equity accounts are translated at an average exchange rate for the period Common stock and APIC accounts are translated at their respective historical exchange rates. 31. Which of the following statements is true? A) Revenues and expenses can only be translated at the exchange rate in effect when B) US GAAP permits an averaging of exchange rates in order to facilitate the C) Companies are required to use an averaging method that weights transactions by D) Companies are permitted to use an average exchange rate for the period to translate recognized. translation process and prescribes a specific approach for companies to use. the relative proportion of sales volume during the period. revenues and expenses under the assumptions that revenues and expenses occur evenly throughout the period. Page 7