7. Gains from remeasuring a foreign subsidiarys financial statements from the local currency, which is not the functional currency, into the parent companys currency should be reported as a(n)

A: Deferred foreign exchange gain. B: "Other comprehensive income" and as a separate component of stockholders equity. C: Extraordinary item, net of income taxes. D: Part of continuing operations.

8. If one Canadian dollar can be exchanged for 90 cents of United States money, what fraction should be used to compute the indirect quotation of the exchange rate expressed in Canadian dollars?

A: 1.10/1 B: 1/1.10 C: 1/.90 D: .90/1