While Conducting Trend Analysis, Financial Statement Amounts Should Be Translated

question 45

Multiple Choice

While conducting trend analysis, financial statement amounts should be translated using:

• A)current exchange rate to avoid translation adjustment.
• B)historical exchange rate to ensure compliance with IFRS.
• C)average exchange rate avoid translation adjustment.
• D)current rate at the end of each year.

---

Definitions:

Causal Attribution

The process of assigning causes or reasons to behaviors and events, explaining why things happen or why certain actions were taken.

Covariation Model

A psychological theory proposing that people determine the cause of an event based on the pattern of covariation between the event and the potential causes across time and circumstances.

Discreteness

Pertains to the characteristic of being separate and distinct in nature, often referring to the classification of data or phenomena into distinct categories.

External Attribution

The process of inferring that a person's behavior is due to situational factors, rather than their own personal characteristics.