Under the Functional Currency Translation (FCT) Method, Which of the Following

question 15

Multiple Choice

Under the functional currency translation (FCT) method, which of the following statements is correct?

• A) The relationship of balance sheet items is best preserved.
• B) A single historic rate is used to translate all income statement items.
• C) A net asset exposure is most likely.
• D) Historic rates are used to translate most non-monetary items.

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Definitions:

Dendrites

Branch-like extensions of neurons that receive signals from other neurons and are crucial for neuronal function.

Soma

In the field of biology, it refers to the main structure of a living entity separate from its germ cells, and in neuroscience, it pertains to the neuron's soma.

Synapse

The small gap between two adjacent neurons, consisting of the presynaptic and postsynaptic neurons’ membranes and the space between them.

Dendrite

A projection of a neuron that receives signals (electrical and chemical) from other neurons or sensory cells, facilitating neural communication.