A) as an Item to Be Included in Income or Loss

question 3

Multiple Choice

• A) As an item to be included in income or loss for the year.
• B) As a reduction or increase in the carry cost of the asset.
• C) As a contra account to be fully disclosed and to show the impact of foreign exchange differences.
• D) The differences should be included in the calculation of other comprehensive income.

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Definitions:

Long Run

An economic interval where all production elements and expenses can fully adapt, as they are changeable, permitting comprehensive adjustments to any variations.

Short Run

A period in economic analysis where at least one production factor is fixed, limiting the ability of the economy or business to adjust immediately.

Long Run

A period of time in economics sufficient for all markets to adjust, including changes in production capacity and market entry or exit.

Short Run

In economics, a period in which at least one input is fixed and cannot be changed by the firm.