P12-31 Matching Key Terms LO 12-1, 12-2, 12-3,12-4, 12-5, 12-6, 12-7, 12-8 Match the items in the left-hand column with the descriptions/explanations in the right-hand column Answer is complete but not entirely correct. tems Descriptions/Explanations Method used to restate a foreign entity's financial statement when the local currency unit is the functional currency Increase in the Investment in Sub account Current exchange rate 2 Foreign entity goodwill under translation Currency of the environment in which an entity primarily generates and expends 3 Credit translation adjustment for the year Other comprehensive income- translation adustment cash Always the local currency unit of the foreign entity 5 Translation Exchange rate at the end of the period Exchange rate at the date of the asset acquisition or at the date of dilvidend 6 Historical exchange rate declaration 7 Foreign entity goodwill under remeasurement Average exchange rate during the perlod 8 Remeasurement Periodic change in the cumulative translation adjustment 9 Debit translation adjustment for the year Mothed under which goodvll must bo djustod to the curont oxchange rate at tha balance sheet date Decrease in the Investment in Sub account 10 Functional currency