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:

Boucher

Francois Boucher was a French painter known for his idyllic and voluptuous paintings on classical themes, decorative allegories representing the arts or pastoral occupations.

French Painting

Refers to the visual arts originating from or associated with France, known for its influential movements and artists throughout history, including Impressionism and Romanticism.

Jacques-Louis David

A leading French painter of the neoclassical period, known for his historical and mythological works that emphasized morality and patriotism.

French Revolutionary Forces

The military and paramilitary units participating in the French Revolution, instrumental in the overthrow of the monarchy and establishment of the First Republic.