1. If a company uses the temporal method for translating its foreign subsidiary's financial statements, which of the following accounts is exposed?
A. Accounts payable
B. Capital stock
C. Net plant and equipment
D. Inventory
2. NVT (U.S.A.) is a multinational corporation. It operates subsidiaries in four countries. For translation purposes, which of the following countries is considered hyperinflationary?
A. Country M: inflation2014 = 30%, inflation2015 = 38%, inflation2016 = 27%
B. Country Q: inflation2014 = 29%, inflation2015 = 38%, inflation2016 = 32%
C. Country G: inflation2014 = 10%, inflation2015 = 8%, inflation2016 = 5%
D. Country J: inflation2014 = 40%, inflation2015 = 38%, inflation2016 = 51%