6) Consider two different foreign subsidiaries of Georgia-Pacific Wood Products Inc. The first subsidiary mills trees in Canada and ships its entire product to the Georgia-Pacific U.S. The second subsidiary is also owned by the parent firm but is located in Japan and retails tropical hardwood furniture that it buys from many different sources. The first subsidiary is likely a/an foreign entity with most of its cash flows in U.S. dollars, and the second subsidiary is more of a/an foreign entity. A) domestic, integrated B) self-sustaining: domestic C) integrated; self-sustaining D) self-sustaining: integrated 7) A foreign subsidiary's currency is the currency used in the firm's day-to-day operations. A) local B) integrated C) notational dollar D) functional 8) The two basic methods for the translation of foreign subsidiary financial statements are the method and the method. A) current rate; temporal B) temporal; proper timing C) current rate; future rate D) none of the above 9) The basic advantage of the method of foreign currency translation is that foreign nonmonetary assets are carried at their original cost in the parent's consolidated statement while the most important advantage of the method is that the gain or loss from translation does not pass through the income statement A) monetary; current rate B) temporal; current rate C) temporal; monetary D) current rate; temporal 10) Under the U.S. method of translation procedures, if the financial statements of the foreign subsidiary of a U.S.company are maintained in U.S. dollars, A) translation is accomplished through the current rate method. B) translation is accomplished through the temporal method. C) translation is not required. D) the translation method to be used is not obvious