The Underlying Principle of the Current/noncurrent Method Is

question 4

Multiple Choice

The underlying principle of the current/noncurrent method is

• A)assets and liabilities should be translated based on their maturity.
• B)monetary balance sheet accounts should be translated at the spot rate; nonmonetary accounts are translated at the historical rate in effect when the account was first recorded.
• C)monetary accounts are translated at the current exchange rate; other accounts are translated at the current exchange rate if they are carried on the books at current value; items carried at historical cost are translated at historic exchange rates.
• D)all balance sheet accounts are translated at the current exchange rate,except stockholder equity.

---

Definitions:

Temperature

A measure of the hotness or coldness of an object or substance with reference to some standard value.

Thermostat

A thermostat is a device used to control the temperature of a system so that the system's temperature is maintained near a desired set-point by regulating the flow of heat energy into or out of the system.

Degrees Fahrenheit

Degrees Fahrenheit is a unit of temperature where water freezes at 32 degrees and boils at 212 degrees under standard atmospheric conditions.

Mixture

A substance made by combining two or more different materials without chemical bonding or other chemical changes, so that each material retains its own properties.