1. Which of the following is not true regarding the Current Rate method?
It is the most prevalent method for translating foreign subsidiary's financial statements
Translation gains or losses are reported separately and accumulated in a separate equity account with a title such as “cumulative translation adjustment.”
Capital stock is translated using the exchange rate in existence on the balance sheet date.
It is used by a multinational corporation whose affiliate is operating in a hyperinflationary country.
2. According to the CFA code of conduct members must adhere to which of the following principles:
a. Comply with applicable law or regulation related to professional activities
b. Must not engage in conduct that the constitutes a violation of the Code of Standards
c. In absence of applicable law or regulation or when the Code and Standards impose a higher degree of responsibility than applicable laws and regulations, members and candidates must adhere to the code and standards
d. All of the above.