The adjustment from converting a foreign subsidiary's financial statements using the translation method should be shown as

1. An asset or liability (depending on the balance) on the consolidated balance sheet

2. A revenue or expense (depending on the balance) on the consolidated income statement

3. A component of stockholders' equity on the consolidated balance sheet

4. A component of cash flows from financing activities on the consolidated statement of cash flows

5. An element of the notes which accompany the consolidated financial statements

Westmore, Ltd. is a British subsidiary of a U.S. company. Westmore's functional currency is the pound sterling. The following exchange rates were in effect during

Jan 1...............................................$1 = .625 pound sterling

June 30..............................................$1 = .610 pound sterling

Dec 31..............................................$1 = .620 pound sterling

Weighted average rate for the year..$1 = .630 pound sterling

On December 31, Westmore had accounts receivable of 280,000. What exchange is used in calculating consolidated accounts receivable?

	1.	$1 = .620 pound sterling
	2.	Weighted average rate for the year..$1 = .630 pound sterling
	3.	$1= .610 pound sterling
	4.	$1= .625 pound sterling

For a foreign subsidiary that uses the US dollar as its functional currency, what conversion method is required?

		Current/Noncurrent Method
		Monetary/Non-monetary Method
		Current
		Indirect
		Remeasurement