Which of the Following Is a Limitation of Using the Temporal

question 1

Multiple Choice

Which of the following is a limitation of using the temporal method for translating foreign currency financial statements?

• A) The translated asset and liability amounts have no meaningful interpretation.
• B) The translation adjustment will usually have a negative impact on income.
• C) Financial ratios after translation will be distorted.
• D) All of the above are limitations of the temporal method.

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Definitions:

Wants

Needs that are learned by a person.

Need Arousal

A situation in which a salesperson triggers a psychological, social, or economic need in the buyer.

Information Evaluation

A process that determines what will be purchased as the buyer matches this information with needs, attitudes, and beliefs in making a decision.