The Underlying Principle of the Monetary/nonmonetary Method Is

question 17

Multiple Choice

The underlying principle of the monetary/nonmonetary method is

• A)assets and liabilities should be translated based on their maturity.
• B)monetary accounts have a similarity because their value represents a sum of money whose currency equivalent after translation changes each time the exchange rate changes.
• 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 for stockholders' equity.A "plug" equity account,named cumulative translation adjustment (CTA),is used to make the balance sheet balance,since translation gains or losses do not go through the income statement according to this method.

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Definitions:

Aggressive Behavior

Actions that are intended to cause harm or pain to another person, often reflecting a response to perceived threats.

Neglectful

Referring to a condition or behavior characterized by a lack of attention, care, or maintenance.

Authoritative

describes a leadership or parenting style characterized by high responsiveness and high demands, aiming to guide children's behavior with empathy and rules.

Permissive

Describes a parenting style characterized by low demands with high responsiveness, often leading to less disciplined but more emotionally secure children.