The General Rule for Translating Liabilities Denominated in a Foreign

question 2

Multiple Choice

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

• A) first classify the liabilities into current and non-current.
• B) first classify the liabilities as monetary or non-monetary.
• C) translate all liabilities using the current rate existing at end of reporting period.
• D) translate all liabilities using the rate current on entering into the transaction.

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Definitions:

Influence Tactics

Strategies or actions used by individuals or groups to persuade or direct the behavior or decision-making of others towards a desired outcome.

Ethical and Honest

Behaviors and practices that are morally right, characterized by fairness, transparency, and integrity.

Neutral

Not favoring any side in a conflict, competition, or comparison; impartial.

Debasement

The reduction in quality or value of something, often deliberately for personal gain or advantage.