The Underlying Principle of the Current Rate Method Is

question 49

Multiple Choice

The underlying principle of the current rate 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:

Parasympathetic

Part of the autonomic nervous system responsible for rest and digest functions, counterbalancing the fight-or-flight responses.

Nervous System

The network of nerve cells and fibers that transmits nerve impulses between parts of the body, enabling communication between the brain, spinal cord, and other areas.

Action Potential

A temporary reversal of the electrical polarization of the membrane of a nerve cell or muscle cell, primarily involved in the transmission of nerve impulses.

Hyperpolarization

A change in a cell's membrane potential that makes it more negative, moving it further from the threshold for electrical activity.