1. For PetroFina, a Belgian [national currency is EUR] petro-chemical multinational corporation with operations in the U.S. [national currency is USD], Canada [national currency is CAD], and Japan [national currency is JPY], the reporting currency PetroFina uses for its consolidated financial statements is the ___
a) CAD
b) EUR
c) JPY
d) USD
2. Under the current rate method, translation gains or losses are reported separately and accumulated in a separate equity account called
a) cumulative translation adjustment
b) retained earnings
c) common stock
d) paid-in capital
e) net income