Average Exchange Rates Are Used to Translate Certain Items from Foreign

question 13

Multiple Choice

Average exchange rates are used to translate certain items from foreign financial statements into U.S. dollars. Such averages are used in order to:

• A) smooth out large translation gains and losses.
• B) eliminate temporary fluctuation in exchange rates that may be reversed in the next fiscal period.
• C) avoid using different exchange rates for some revenue and expense accounts.
• D) approximate the exchange rate in effect when the items were recognized.

---

Definitions:

Skiing Clothing

Apparel designed specifically for skiing, including items that provide warmth, protection, and mobility.

Sales Call

A visit or phone call made by a salesperson to a potential customer with the objective of promoting or selling a product or service.

Salesperson

An individual who sells products or services to customers, often as their primary job role.

Water-Resistance

A property of materials which prevents the penetration of water to some degree but not entirely.