Under Both the Temporal Method and the Current Rate Method

question 14

Multiple Choice

Under both the temporal method and the current rate method, what exchange rate should be used to translate a foreign subsidiary's dividends into parent company currency?

• A) Current rate
• B) Historical rate
• C) Average rate
• D) Any of the above methods can be used under both the temporal and current method.

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Currency

A system of money in general use in a particular country or region, often used in financial transactions and accounting.