When Translating from the Functional Currency into the Presentation Currency

question 28

Multiple Choice

When translating from the functional currency into the presentation currency, exchange differences arise because of which of the following?

• A) Opening net assets are translated at a closing rate different from the previous closing rate
• B) Income and expense items are translated at rates different from the closing rate used for all assets and liabilities
• C) Both a and b
• D) None of the above

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Definitions:

Imitation

The action of using someone or something as a model and copying their behavior, movements, or actions.

Lose Status

Refers to a decrease in one's social or professional standing, reputation, or perceived importance among peers or society.

Ridiculed

Subjected to mocking, teasing, or derision, often with the intent to embarrass or diminish the value of someone or something.

7-Year-Olds

A developmental stage typically characterizing children aged seven, marked by significant cognitive, emotional, and social growth.