The Underlying Principle of the Current/noncurrent Method Is

question 48

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 stockholders' equity.

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Definitions:

Social Learning Theory

A theory that proposes individuals learn behaviors through observing and imitating others, reinforced by rewards or punishments.

Social Forces

Factors that influence and shape behaviors, attitudes, and culture within societies, including laws, norms, and institutions.

Merton's Model

A sociological theory proposing that societal pressure to achieve success can lead individuals to engage in deviant behavior.

Preconditions

Necessary conditions that must exist or occur before a certain event can happen.