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32. Which of the following best describes current GAAP with respect to the translation process? A) Assets and liabilities are translated at the exchange rate

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32. Which of the following best describes current GAAP with respect to the translation process? A) Assets and liabilities are translated at the exchange rate at the balance sheet date regardless of when they arose. B) Assets and liabilities are translated at the exchange rate in effect when they arose C) Assets are translated at the exchange rate at the balance sheet date, but liabilities are translated at the exchange rate in effect with the liabilities were incurred D) Revenues and expenses must be translated at the exchange rate in effect then they are recognized. 33. Which of the following statements is true about the treatment of the AAP in the consolidation process? A) The SUS value of the beginning-of-year balance carries over from the previous year. The AAP relating to foreign acquisitions is not amortized like that related to US acquisitions B) C) There is no gain or loss resulting from the translation of the AAP, D) The translation of the AAP requires both amortization and the recognition of gains or losses on the translation. 34. Which of the following statements is correct? A) The functional currency must always be the currency of the US parent company. B) Non-US subsidiaries always record transactions in SUS. C) If the foreign-currency-denomi inated subsidiary financial statements are already in he functional currency, but not in the parent's currency, then the financial information must be "translated" into the parent's currency None of the above D) 35. Which of the following best describes the accounting for nonmonetary assets and liabilities? A) They are reported at fair value. enues and expenses arising from these assets are translated at historical cost C) They are reported at fair value only if less than historical cost D) None of the above are true

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