When Translating the Revenue and Expenses in the Statement of Profit

question 20

Multiple Choice

When translating the revenue and expenses in the statement of profit or loss and other comprehensive income, theoretically each item of revenue and expense should be translated using the spot exchange rate between the:

• A) functional currency and the foreign currency on the reporting date.
• B) presentation currency and the local currency on the transaction date.
• C) presentation currency and the functional currency on the reporting date.
• D) functional currency and the foreign currency on the date the transaction occurred.

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Definitions:

Monozygotic Twins

Identical twins sharing the same genetic profile.

Dizygotic Twins

Also known as fraternal twins, these are siblings born at the same time but from two different eggs fertilized by separate sperm, sharing about 50% of their DNA.

Shared Environment

A term in psychology referring to those environmental factors that are experienced by multiple individuals in the same way, contributing similarly to their development.

Identical Twin

A twin developed from a single fertilized ovum, thus sharing identical genetic material.