An Exception to the Requirement That Foreign Currency Monetary Items

question 58

Multiple Choice

An exception to the requirement that foreign currency monetary items should be re-translated at the reporting date is:

• A) When the foreign exchange rate is considered to be undervalued.
• B) When the foreign currency exchange rate is fixed for a particular transaction according to a contractual arrangement.
• C) When exchange rates are expected to move in the opposite direction shortly after reporting date.
• D) When the foreign exchange rate is considered to be overvalued.
• E) None of the given answers.

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Definitions:

Neurons

Unique cells within the nervous system that convey data to other neurons, muscles, or glands.

Communicate

To convey or exchange information, thoughts, or messages through speech, writing, or signals.

Graded Potential

Graded Potential is a variable electric potential change in neurons that decreases in magnitude with distance from the stimulus source, contrary to the all-or-none response of action potentials.

Electrical Charge

A fundamental property of matter that causes it to experience a force when placed in an electromagnetic field.