When a Foreign Entity Has the Foreign Currency as Its

question 54

Multiple Choice

When a foreign entity has the foreign currency as its functional currency,it uses which exchange rate to translate revenues and expenses in the income statement?

• A) the average exchange rate during the period
• B) the end of the period exchange rate
• C) the historical exchange rate
• D) the exchange rate on the date the asset or liability was obtained

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Definitions:

Separate Personalities

A term often associated with dissociative identity disorder, characterizing an individual's presentation of two or more distinct and alternating personalities.

Unipolar Mood Disorder

A mental health disorder characterized by persistent depression and a lack of the high or manic phases seen in bipolar disorder.

Bipolar

A psychiatric diagnosis describing a category of mood disorders characterized by the presence of one or more episodes of abnormally elevated mood, often alternating with episodes of depression.

Cyclical

Occurring in cycles; characterized by recurring phases or patterns.