The General Rule for Translating Liabilities Denominated in a Foreign

question 18

Multiple Choice

The general rule for translating liabilities denominated in a foreign currency into the functional currency is to:

• A) translate all liabilities using the current rate existing at the end of the reporting period.
• B) first classify the liabilities into current or non-current.
• C) first classify the liabilities as monetary or non-monetary.
• D) translate all liabilities using the rate applicable when the original transaction was recorded.

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Definitions:

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