The Underlying Principle of the Current Rate Method Is

question 22

Multiple Choice

The underlying principle of the current rate 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:

Host Population

A group of organisms that serve as a habitat or source of food for a parasite or pathogen.

Strain

In biology, a genetic variant or subtype of microorganisms, such as viruses or bacteria. In physics, it refers to deformation resulting from stress.

Swap Genes

The process of exchanging genetic material between two chromosomes or fragments, leading to genetic recombination or horizontal gene transfer.

Cetaceans

A group of marine mammals that includes whales, dolphins, and porpoises, characterized by their fully aquatic lifestyle and adaptations such as flippers and blowholes.