When Translating into the Functional Currency, Monetary Liabilities Are Translated

question 14

Multiple Choice

When translating into the functional currency, monetary liabilities are translated using the:

• A) exchange rate current at the date the item was first recorded.
• B) exchange rate prevailing at the end of the last reporting period.
• C) average exchange rate for the reporting period.
• D) current exchange rate at the end of the reporting period.

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Definitions:

Antitrust Laws

Antitrust laws are regulations that promote competition by restricting monopolies, cartels, and other practices that can reduce consumer choices and hinder market efficiency.

Justice Department

A federal executive department responsible for enforcing the laws of the United States, overseeing legal affairs, and ensuring justice.

Administrative Bodies

Organizations or agencies responsible for implementing rules and regulations and overseeing a particular sector or aspect of society.

Federal Trade Commission

A United States federal agency established to promote consumer protection and eliminate and prevent anti-competitive business practices.